If you're a higher-rate taxpayer, you could have hundreds or even thousands of pounds of unclaimed pension tax relief.
This could apply if your workplace pension is with:
NEST
The People's Pension
Standard Life Workplace Pension
True Potential
Penfold
Collegia
These pension schemes use, or can use, a system called relief at source.
If you pay 40% or 45% Income Tax, your pension provider may only claim basic-rate tax relief for you.
You may need to claim the rest from HMRC yourself.
If you're a 40% taxpayer and your full pension contribution qualifies for higher-rate relief:
Paid £2,000 into your pension?
You could potentially claim another £500
Paid £4,000?
You could potentially claim another £1,000
Paid £8,000?
You could potentially claim another £2,000
And that's for just one tax year.
If you've missed out on additional tax relief in previous years, the amount could run into thousands of pounds.
The exact amount depends on your income, pension contributions and how much of your income was taxed at the higher rate.
With a relief-at-source pension, your pension provider normally claims basic-rate tax relief automatically.
For example:
You pay £4,000
HMRC adds £1,000 to your pension
£5,000 goes into your pension
If the full £5,000 qualifies for 40% tax relief, you could be entitled to another £1,000 of tax relief personally.
But that additional relief isn't necessarily claimed automatically.
You may have to claim it yourself.
If you were entitled to higher-rate pension tax relief in previous tax years but didn't claim it, you may still be able to make a retrospective claim, subject to HMRC's rules and time limits.
If you've paid too much tax as a result, you could be due a tax refund.
So if you've missed £1,000 of additional relief each year for several years, there could be thousands of pounds at stake.
For the current tax year, HMRC can give you additional pension tax relief through your tax code, meaning you pay less Income Tax.
So, in simple terms:
Previous years → you could be due a tax refund.
Current year → you could pay less tax through your tax code.
You could still qualify.
Other workplace and personal pensions use relief at source too.
Ask your employer or pension provider:
“Does my pension use relief at source?”
If the answer is yes and you pay Income Tax above 20%, check whether you've claimed all the pension tax relief you're entitled to.
If your workplace pension uses net pay, your full tax relief is normally given automatically through payroll.
There are three routes depending on your circumstances.
If you don't complete Self Assessment and you're claiming additional pension tax relief through your tax code for the current tax year, you can use HMRC's online service.
You'll need to sign in and upload evidence of your pension contributions.
Claim pension tax relief online with HMRC.
If you're unable to claim online, HMRC says you can make your claim by letter.
Send your claim to:
Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom
You don't need to include a street name, city or PO Box.
Your letter should include:
your National Insurance number;
the type of pension;
the name of your pension provider;
your payroll number or reference;
the net amount you contributed for each tax year you're claiming.
You'll also need to include evidence, such as a pension statement, letter from your pension provider or payslip.
For a workplace pension, HMRC says the evidence should show that you already received 20% tax relief automatically.
See HMRC's full postal claim requirements.
If you complete a Self Assessment tax return, you must claim your pension tax relief through your tax return.
This applies to both the current tax year and previous years.
HMRC says it will review claims made through its pension tax relief service and contact you within 28 working days.
Providing all the information and evidence requested can help avoid delays.
Higher-rate taxpayer?
Workplace pension with NEST, The People's Pension, Standard Life, True Potential, Penfold, Collegia — or another provider using relief at source?
You could have unclaimed pension tax relief.
Paid £4,000 into your pension and the full contribution qualifies for 40% tax relief?
You could potentially claim another £1,000.
And if you've missed out in previous years, the amount you could get back could run into thousands of pounds.
Check if you can claim with HMRC.
The People's Pension uses relief at source by default, although some employers may use a net pay arrangement. Pension arrangements can vary, so check with your employer or pension provider.
This article provides general information and is not financial or tax advice. Your entitlement to pension tax relief and any resulting tax refund depends on your individual circumstances, taxable income and pension contributions.