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Pension Contributions and Tax Relief
Over 20 years helping UK tax payers ensure they don't pay more tax than they have to.
What are Pension contributions?
Pension contributions are payments you make into a pension fund to support your income in retirement.
Could you be owed a pension refund? Check your eligibility with our Pension Contribution Calculator
What types are there?
Workplace pension
Arranged by your employer, with contributions usually deducted automatically from your salary.
Private pension
Set up independently, with payments made directly from your bank account.
Workplace pensions
Most employees (PAYE) are now enrolled into a workplace pension. While you can opt out, most people remain enrolled.
Typically:
- You contribute a portion of your salary
- Your employer usually contributes as well
- Contributions are paid regularly via payroll
For tax relief purposes, we focus on your personal contributions only.
Why this matters
Pension contributions usually receive basic-rate tax relief (20%) automatically.
However, if you are a:
Higher-rate taxpayer (40%)
Additional-rate taxpayer (45%)
…you may be entitled to extra tax relief of up to 20–25%, which is not always applied automatically.
Many people are unaware of this and never claim what they’re owed.
Income tax bands (England, Wales & Northern Ireland)
Band
Band
Rate
Personal Allowance
Up to £12,570
0%
Basic Rate
£12,571 – £50,270
20%
Higher Rate
£50,271 – £125,140
40%
Additional Rate
Over £125,140
45%
Thresholds are frozen until April 2028. Scottish tax bands differ.
Who CAN claim additional tax relief?
You may be eligible if you are:
A higher or additional-rate taxpayer
Making pension contributions via: - A Relief at Source (RAS) scheme (contributions taken from net pay)
- A private pension
A self-employed individual contributing to a pension
Who is NOT eligible?
You generally cannot claim additional relief if:
Your pension contributions are taken from your gross pay
You are a basic-rate taxpayer (earning under £50,270)
Your pension uses: - Salary sacrifice, or
- Net pay arrangement
In these cases, either:
- You already receive full tax relief automatically, or
- No additional relief is due
How do I know if I qualify?
Check how your pension contributions are taken:
|
Type
|
Taken from
|
Eligible for tax back?
|
|---|---|---|
|
Relief at Source (RAS)
|
Net income (after tax)
|
Yes
|
|
Salary Sacrifice / Net Pay
|
Gross income (before tax)
|
No
|
You’re likely eligible if:
You earn over £50,270
You pay into a pension
Your contributions come from your take-home pay
If you’re unsure, check with your employer or pension provider.
Fun facts and Stats
Over £1.3 billion unclaimed!
(from 2016 to 2021)
Why is there so much unclaimed tax relief? Likely because people don’t know they need to and/or they don’t know how to.
Did you know? In 2023/24, 6.8 million people contributed to pensions using the relief at source (RAS) system, while over 7.3 million people were higher and additional-rate tax payers.
- You can only claim the tax relief if you’re under 75.
- You can only get tax relief on your payments up to your personal annual allowance (usually £60,000) or your total relevant UK earnings – whichever is lower.
Sources: corporate-adviser.com (FOI reveals over £1bn of pension tax relief unclaimed by higher earners) and Financial Times
Well-known pension providers
Disclaimer: This information is for general guidance only and should not be considered financial advice.
How much am I likely to get?
This depends on:
Your income
Your pension contributions
Your tax band
You must have paid higher or additional-rate tax in the relevant tax year to benefit. Use our calculator to estimate your refund.
Start your claim now
Don’t leave your money on the table. We handle the entire process for you, ensuring:
- We guide you through the claim process
- Your claim is reviewed for accuracy
- We help ensure you receive the maximum refund available
Frequently Asked Questions
Everything you need to know about pension tax relief.
- What happens if I don’t claim it?Nothing happens—but you miss out on money you’re entitled to.
- Where does the money get sent if I claim it?Any successfully claimed tax relief is paid directly to you, and you can use it however you wish.
- How many years can I claim for?You can claim for up to the last 4 tax years of eligible contributions.
- Where does the money come from?HMRC. They have a fund for these types of tax relief.
- How do I claim the money?You can claim the tax relief yourself or through an Agent like Express Tax Claims. How to claim depends on several factors including:
- the tax year you are claiming for
- whether you were in Self-Assessment or not
- The correct method is used
- Your claim is accurate
- You receive the maximum amount you're entitled to
- How many years can I claim for?You can claim for up to the last 4 tax years.
- How do I know if my contributions qualify for tax relief?How do I know if my contributions qualify for tax relief? You need to find out what arrangement your pension is on. Check with your employer or pension provider if you’re on:
Relief at Source (RAS)
Contributions made from net income
Eligible for tax relief
Salary Sacrifice / Net Pay Arrangement
Contributions made from gross income
No further tax relief
- How do I find out how much I contributed?You can check:
- Your pension provider statements
- Your employer
- Your final payslip of the tax year (often shows totals)
- How much tax relief is unclaimed?Over £1.3 billion from 2016 to 2021!
- Why is there so much unclaimed tax relief?Likely because people don’t know they need to and/or they don’t know how to.
