How to claim your higher rate pension tax relief
How you claim your pension tax rebate depends on your own set of circumstances.
Information from the pension provider confirming the type of pension scheme and payments made in each tax year is normally needed as evidence.
Under PAYE, you must submit your claim within four tax years or forfeit your entitlement.
For claims relating to past tax years, you’ll need to contact HMRC directly:
- You can utilise HMRC’s online dedicated portal for higher rate pension relief claims through the .GOV website.
- Alternatively, you may submit a written application with supporting documentation for each tax year to:
PAYE and Self Assessment,
HMRC,
BX9 1AS.
Higher rate pension tax relief through Self Assessment
If you complete a self assessment tax return you need to include your private pension contributions in your tax return.
There is a designated section in your SA100 tax return to include your annual private pension contributions found under the specific section called ‘Tax reliefs’.
You can amend any tax returns that have been submitted in the past which didn’t include your private pension contributions.
This process is called an overpayment relief claim and must be made within strict timescales to allow for any refund of tax due to be issued.
Take a look at our Pension Tax Relief Guide to find out more about pensions and the tax relief that higher rate taxpayers can claim.
What about additional rate taxpayers?
The same pension tax relief rules apply to individuals paying additional rate tax at 45%.
HMRC gives tax relief at 25% (the difference between basic rate and additional rate) instead of 20% for additional rate taxpayers.
How does HMRC repay a pension tax relief ?
HMRC figures out your higher rate pension tax rebate by looking at how much you contributed to your pension and your tax details for the year in question.
They check if you have paid too much or too little tax and make any needed corrections before sending out the rebate.
If you get your pension tax rebate through PAYE or self-assessment, HMRC prefers sending the payment through a BACS transfer.
They will deposit the money straight into the bank account you provide. This option tends to be quicker and safer compared to other ways of receiving payment.
If BACS payment cannot be processed, like when bank details are wrong or there are technical problems, HMRC sends a cheque to your registered address.
You can track your rebate status by logging into your online personal tax or self-assessment account.
These accounts show real-time updates about the progress of your refund and when you might get paid.
Will the tax relief be paid directly into my pension pot?
No any refund from claiming tax relief goes to you personally rather than into your pension pot.
While the basic 20% tax relief is added directly to your pension by your provider, the additional higher or additional rate relief is typically given through:
- an adjustment to your tax code,
- a tax rebate,
- or a reduction in your tax bill if claiming via Self Assessment.
What is the difference between “relief at source” and “net pay arrangement” schemes?
Relief at Source: Your pension provider automatically claims basic rate (20%) tax relief and adds it to your pension pot. Higher and additional rate taxpayers must claim the extra relief themselves.
Net Pay Arrangement: Your employer takes pension contributions from your salary before deducting Income Tax, meaning you receive the full tax relief immediately at your highest rate without needing to claim.
Other tax rebates for higher rate taxpayers
Tax rebates can be owed back to higher and additional rate taxpayers for reasons other than pension relief.
You can use our other Tax Rebate Calculators below to find out more:
