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Workers Missing Out on Millions in Pension Tax Relief Following HMRC Changes
Most higher-rate taxpayers in the UK do not claim an additional 20-25% pension tax relief, leaving hundreds of millions of pounds unclaimed annually, analysis shows.
- New analysis reveals workers in the UK leave hundreds of millions of pounds in unclaimed pension tax relief each year, which must be claimed directly from HM Revenue & Customs .
- Higher-Rate and additional-rate taxpayers must claim the remainder themselves, and most workers earning over £50,270 fail to claim the extra 20–25% relief because it is not automatic.
- Sam's example shows a £5,000 contribution with £1,000 automatic relief plus £546 additional higher-rate relief, costing Sam £3,454, while those earning £55,270 pay £3,000 under full 40% relief.
- Many eligible workers face missing out on hundreds or thousands of pounds because pension contributions refund income tax up to the annual allowance £60,000 or 100% of earnings.
- HM Revenue & Customs now offers a streamlined online claims service and allows backdating for four previous tax years; Chris Eastwood, CEO and co-founder of Penfold, warned `higher-rate taxpayers must check whether they’re leaving free money on the table.
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Total News Sources34
Leaning Left2Leaning Right0Center30Last UpdatedBias Distribution94% Center
Bias Distribution
- 94% of the sources are Center
94% Center
C 94%
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