Tax Advantages for Individuals

Both Employed and Self-Employed

Contributing Direct


Employees as well as the self-employed are able to contribute directly from their own financial resources outside of earnings under PAYE. Making payments to the SuperTrust UK Master Trust outside their employer’s payroll must be via the Relief at Source arrangement. However, it is important members are aware of the HMRC rules which apply.


Tax relief will not be claimable on contributions greater than the prevailing Annual Allowance limit, Members should check with their tax adviser or HMRC for confirmation on limits and available arrears of relief.


Under Relief at Source an individuals can contribute (currently) up to £3600 per annum gross (£2880 net) from any source regardless of whether they receive taxable earnings.

However, members contributing over £3600 before tax relief in total to all pension plans, must ensure these contributions are made from Net Relevant Earnings for pension purposes in order for tax relief to be granted.



Method of granting tax relief


Contributions made by individual's direct are only available under the Relief At Source arrangement.


This means if you paid £40,000 from your own bank account into the SuperTrust Pension Scheme, HMRC it is regarded as having been net of basic rate tax and £10,000 (20% tax) is claimed from HMRC by the scheme and added to your pension pot.


Higher and additional rate tax payers are entitled to marginal rate tax relief so can claim relief at the 40% and 45% rates by way of a self-assessment return.




If you are a higher or additional rate tax payer and your employer uses the SuperTrust for their workplace pension scheme, it may be more efficient to contribution via your employer’s payroll. Contributions made under Net Pay Arrangement obtain tax relief at the member’s highest marginal rate directly from payroll (if you do not consider other sources of income).

Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. SuperTrust UK Master Trust is regulated by the Pensions Regulator (PSR Number: 10274116) as a provider of workplace pension schemes. All investments of the pension scheme are regulated by the Financial Conduct Authority (FCA). The trustees understand that based on correspondence with the FCA, scheme members have access to compensation under the rules of the Financial Services Compensation Scheme (FSCS) in the event of the insolvency or default by our investment providers.

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