Can I make multiple single contributions? How does it work?
Yes, you can make multiple single contributions. You’ll need to submit an application form for each new contribution request.
You won’t need to resubmit ID documents again within a three-month period, as long as your originals are still valid and circumstances haven’t changed.
How does the carry forward rule work?
You may be able to make use of any annual allowance that you might not have used during the previous three tax years. This is called carry forward.
To use carry forward, there are certain conditions that need to be met. You’ll also need to provide us with a calculation and there is space on the application form to include this.
How do I claim tax relief on my single contribution?
How you claim tax relief depends on which arrangement your employer has.
Net pay arrangement - if your employer uses the net pay tax relief basis, they deduct your regular pension contributions from your gross pay and pay this directly to us. This means you get the full tax relief at the point of payment.
However, we’re unable to add tax relief if you make a single contribution directly into your Smart Pension account from your personal bank account. You’ll need to claim any tax relief owed to you from HMRC directly through the self-assessment process or by contacting HMRC.
Relief as source (RAS) arrangement - if your employer uses the RAS tax relief basis, your net payment needs to be 80% of your intended gross contribution. We’ll claim your 20% tax relief from HMRC and as soon as we receive payment from them, we’ll add it to your pension. For example, if you wanted to pay in £100, you would pay in £80 and we would add the £20 tax relief later.
Higher and additional rate taxpayers will need to claim any additional tax relief through the self-assessment process or by contacting HMRC.
Please ensure that you’re aware of the tax relief process before you pay a single contribution directly into your Smart Pension account. You should seek financial advice if you’re unsure about the process or of the impact on your finances.
How do I claim tax relief on a single contribution my employer has paid for me?
Your employer will pay the contribution into your Smart Pension account as a gross contribution. You won’t be able to claim any tax relief on this.
Employer pension contributions are classed as a business expense. This means contributions have to be made wholly and exclusively for the purposes of the business trade. Contributions made by your employer should also reflect the duties you perform within the company.
Please ensure that you’re aware of the tax relief process before your employer pays a single contribution directly into your Smart Pension account. You should seek financial advice if you’re unsure about the process or of the impact on your finances.
Can I request a certificate or receipt to reclaim my tax relief?
Yes, we can provide you with a letter confirming your single contribution payment. You can then use this to reclaim your tax.
Send your request to [email protected]
Can I pay regular monthly contributions into my Smart Pension?
Yes, you can pay regular monthly contributions into your Smart Pension. If you’re not already paying into your pension, you could be missing out on certain benefits:
You’re missing out on additional money from your employer. When you pay into your pension, so does your employer. Plus, if your employer operates a salary sacrifice arrangement, you’ll benefit more. With salary sacrifice, any contributions come from your gross pay, meaning you’ll pay less in National Insurance and tax.
You’re missing out on the wonder of compound interest. This means interest is paid into your pension savings and then reinvested. The longer you leave money in your pension savings, the more compound interest it’ll generate and the more savings you could have for your future.
Will the State Pension be enough for you? The full State Pension for the 2024/25 tax year is £11,502.40 a year. If you qualify for the full amount in the future, is this enough to enjoy the lifestyle you want? Your workplace pension could top up your savings to give you enough to experience the lifestyle you’d like in retirement.
If you were previously enrolled but left the scheme, you can find out how to rejoin by visiting our ‘How to join your pension scheme’ help article.
If you’re already enrolled in the pension scheme but want to change how much you pay into your pension, visit our ‘Change how much you pay into your pension’ help article.
My banking payment system has a daily limit. Can I split my one-off contribution over more than one payment?
Yes, you can split your single contribution over more than one payment if you need to. Simply make the additional payment(s) using the same reference number provided.
How do I get a breakdown of the contributions already paid into my Smart Pension account?
Please see our ‘Where can I see contributions to my pension?’ help article for more information.
Can the contribution be applied for a previous tax year?
No, we are unable to backdate to previous tax years. Contributions must be applied for the tax year in which we receive payment. So for a contribution to count against your annual allowance for the current tax year, we need to receive payment by 5 April.
If you need impartial guidance or advice
The aim of this article is to give information about one-off contributions. This article doesn’t give personal or professional advice. If you need advice, then you should speak to an independent financial adviser. You can also contact the MoneyHelper service for more information and impartial guidance about making one-off contributions. If you are still unsure, and you don’t already have an adviser, you can find a retirement adviser on the MoneyHelper service website.
Get in touch
If you have any questions, you can get in touch through our contact form at smrt.pe/member-contact or by calling us on 0333 666 2626.