04 October 2017
Workplace Pension provider Smart Pension is set to offer a relief-at-source option in addition to its current net pay arrangement to savers.
The fast-growth high tech auto enrolment platform will make the new taxation option, which brings those below the £11,500 per annum threshold into tax relief, available in 2018.
Andrew Evans, co-founder and CEO of Smart Pension, said:
"While contributions are low at the moment, as they rise in 2018 and again in 2019, the help that relief-at-source will give to those on lower incomes will be increasingly important as time goes by.
"Offering a relief-at-source option evens out a complicated system that inadvertently penalises the lower paid and we're delighted we'll soon be able to do this for our members."
Experts claim employees on below £11,500 could be missing out on as much as a 25 per cent boost to their savings via providers that don't offer relief-at-source, while net pay suits higher earners better.
The new arrangement is currently being built into Smart Pension's system and is expected to be up-and-running in 2018.
According to The Pensions Regulator, auto enrolment has brought ten million into saving for their retirement for the first time.
Smart Pension now sees a new business join every seven minutes and welcomes 1,000 new members a day. It now runs workplace pensions for over 60,000 firms and 300,000 members.
The firm's award-winning highly automated platform harnesses time-saving applications to allow fast, seamless auto enrolment with a sign-up and onboarding process that takes just a few minutes from start to finish. It is free to employers and has an AMC-only charging structure for members that is transparent with no upfront or hidden costs.
It is MAF-accredited. In June is was named as Fintech Innovation of the Year and overall winner in the Digital Leaders 100 Awards.
It has an average score of 4.4 out of 5 in Google reviews from its customers.