Claiming higher rate relief on pension contributions

Q: Which mistakes cost people money?

Not claiming at all. The scheme never claims more than 20%, and HMRC will not give the extra relief unless told about the contribution. Entering the wrong figure. Check whether a form asks for the net amount you paid or the gross amount. HMRC's online service asks for the net amount. Claiming on net pay contributions. They have already had full relief through payroll, and claiming again gives double relief that HMRC will recover. Going over the earnings limit. Relief is limited to the higher of £3,600 or your relevant UK earnings, separately from the £60,000 annual allowance. Missing the four year window. Older contributions cannot be relieved once the time limit has passed. If HMRC opens a check into your return, tax investigation insurance pays your accountant's fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

If you pay into a relief at source pension, the scheme only claims basic rate relief of 20% for you. Higher and additional rate taxpayers must claim the rest themselves, either on their Self Assessment return or, if they do not file one, through HMRC’s online claim service, by letter or by phone. The extra relief works by extending your basic rate band by the gross contribution, so you get an extra 20% only on income that would otherwise have been taxed at 40%, and an extra 25% on income taxed at 45%.

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Who needs to make a claim?

You only need to claim if the scheme does not give full relief automatically. GOV.UK says you must claim where:

you pay income tax above 20% and your pension provider claims the first 20% for you (relief at source)
your pension scheme is not set up for automatic tax relief, or
someone else pays into your pension.

Personal pensions, stakeholder pensions and self invested personal pensions all use relief at source, as do some workplace schemes. If your employer takes your contribution from gross pay before tax under a net pay arrangement, you already have full relief and must not claim again. Our page on relief at source vs net pay explains how to tell which method your scheme uses.

Contributions made by your employer do not give you any personal relief (section 188(3)(b) Finance Act 2004), so leave them out of any claim. Contributions made for you by someone else, such as a spouse, are treated as yours, and only you as the member can claim the higher rate element (PTM044220).

How does the extra relief actually work?

Section 192(4) of the Finance Act 2004 provides that, on a claim, your basic rate limit and higher rate limit for the year are increased by the amount of the contribution. The amount used is the gross contribution, which is what you paid plus the 20% the scheme reclaimed. If you paid £8,000, the gross figure is £10,000.

Extending the bands moves £10,000 of income from the 40% band down to the 20% band, saving a further 20% on it. If any income sits in the 45% band, the higher rate limit moves up too, so some income drops from 45% to 40%. GOV.UK summarises the result: you can claim an extra 20% on contributions up to the amount of income you paid 40% tax on, and an extra 25% up to the amount you paid 45% tax on.

GOV.UK’s own example: someone earning £60,270 pays £12,000 gross into a relief at source scheme. They paid 40% tax on £10,000 (the income above £50,270), so they can claim an extra 20% on £10,000. They get no extra relief on the remaining £2,000. The same mechanism is used for higher rate relief on Gift Aid.

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How do I claim through Self Assessment?

If you file a Self Assessment return, GOV.UK says you must claim through the return, both for the current year and for any earlier year. The relief is given when the return is processed, either reducing the tax due or creating a repayment. Contributions made before a return is filed should simply be included. If you have already filed without them, you can amend the tax return within the normal amendment window, and the Self Assessment deadlines still apply.

The gross contribution also reduces your adjusted net income. That can lower or remove the High Income Child Benefit Charge and restore some of the personal allowance for incomes between £100,000 and £125,140, which is why contributions in that range attract unusually high effective relief. See our page on personal allowance tapering.

How do I claim if I do not file a tax return?

HMRC’s guidance “Claim tax relief on your private pension payments” covers people outside Self Assessment who want relief through their tax code for the current tax year. You can claim online, or by letter if you cannot use the online service or you are an agent acting for a client. You will need:

your National Insurance number
the type of pension and the provider’s name
the net amount contributed for each tax year claimed
your payroll or reference number
proof such as a provider statement or payslip showing your name, the contributions and the tax year.

HMRC says it will review the claim and contact you within 28 working days. Relief is then normally given by changing your tax code, so it reaches you through your pay or pension; our page on PAYE tax codes explains how that adjustment appears. HMRC’s manual at PTM044220 also confirms that a higher rate claim can be made to HMRC by telephone or letter.

What is different in Scotland?

Scottish taxpayers in a relief at source scheme receive 20% from the scheme, even if they only pay the 19% starter rate. Section 192(4A) extends the Scottish rate limits in the same way as for the rest of the UK. GOV.UK lists the extra relief that can be claimed:

Scottish rate paid	Extra relief to claim
21%	1%
42%	22%
45%	25%
48%	28%

The 1% at the 21% intermediate rate is small per pound but is often overlooked entirely. See Scottish income tax for the bands.

How far back can I claim?

Section 43(1) of the Taxes Management Act 1970 sets the general time limit for income tax claims at four years after the end of the tax year concerned, unless another provision sets a different period. During 2026 to 2027 a claim can therefore still be made for contributions paid in 2022 to 2023, because that window closes on 5 April 2027. Relief is only given for the tax year in which the contribution was actually paid; HMRC’s manual at PTM044100 confirms unused relief cannot be carried forward or back.

A worked example

Illustration only. Priya lives in England and has a salary of £70,000 in 2026 to 2027, with the standard personal allowance. She pays £8,000 into a self invested personal pension, and the provider adds £2,000, making £10,000 gross.

Without a claim, £19,730 of her income (£70,000 less £50,270) is taxed at 40%.
Her claim extends the basic rate band by £10,000, so only £9,730 is now taxed at 40%.
Her tax falls by £2,000 (20% of £10,000). Combined with the £2,000 added by the provider, the £10,000 contribution has received £4,000 of relief, or 40%.

Had her salary been £55,000, only £4,730 would have been in the 40% band, so the extra relief would be limited to 20% of £4,730.

Which mistakes cost people money?

Not claiming at all. The scheme never claims more than 20%, and HMRC will not give the extra relief unless told about the contribution.
Entering the wrong figure. Check whether a form asks for the net amount you paid or the gross amount. HMRC’s online service asks for the net amount.
Claiming on net pay contributions. They have already had full relief through payroll, and claiming again gives double relief that HMRC will recover.
Going over the earnings limit. Relief is limited to the higher of £3,600 or your relevant UK earnings, separately from the £60,000 annual allowance.
Missing the four year window. Older contributions cannot be relieved once the time limit has passed.

If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

Related Accountapedia entries

Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.