Millions of higher and additional rate taxpayers could be missing out on pension tax relief because they do not claim it through self assessment or HMRC’s online service.
As the 31 January self assessment deadline for the 2024/25 tax year approaches, eligible savers may be leaving hundreds, or even thousands, unclaimed each year. Basic rate relief is usually added automatically to pension contributions, but any extra relief due at higher or additional rates must be claimed separately.
There are exceptions. If you contribute via a salary sacrifice arrangement or a net pay pension scheme, you will receive complete relief automatically through payroll. However, many people paying into relief at source schemes, including some workplace and personal pensions, will need to claim the additional relief themselves.
Self assessment is not the only route. You can also claim through HMRC’s online service. To do this, you will need your National Insurance number, the type of pension, the pension provider’s name, the net amount you contributed for each tax year you are claiming for, and your payroll number or reference (if relevant).
You will also need evidence for each year claimed. This could be a statement or letter from your pension provider, or a payslip from your employer. The document must show your full name, the contributions paid, the relevant tax year, and confirmation that basic rate relief was applied.
Planned changes from 2028 could add complexity, potentially requiring more taxpayers to reclaim relief rather than receive it automatically.
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