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 the new year.
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 early 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 and has been awarded a 5-star Defaqto rating every year since it was launched. 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.