Higher-Rate Pension Tax Relief: How to Claim the Extra 20% Step-by-Step, by Cici Builds Wealth on YouTube. 15 min 29 s.
- Video length
- 15 min 29 s
- Time to do it
- 30 minutes
- Difficulty
- Easy
- Steps
- 10
What you need
Steps
Check whether this applies to you. You must pay higher-rate tax and pay into a personal pension, SIPP or a workplace pension that uses relief at source.
Confirm your pension uses relief at source. The provider tops up your payment with basic-rate tax relief, so a payment of 80 pounds becomes 100 pounds in your pot.
Look at any workplace pension too. Schemes run on net pay take your contribution from pay before tax, so higher-rate relief is already included and there is nothing to claim.
Check your payslip to see how contributions are taken and whether tax relief appears there. This tells you which pension type you have.
Work out the extra relief. It is 20% of the gross contribution, which is 25% of what you actually paid in, so 100 pounds paid in gives you 25 pounds back.
Pick how to claim. You can contact HMRC directly with your figures, or report the contributions on a Self Assessment tax return.
Sign in to your HMRC online account and open the Self Assessment return for the tax year you are claiming.
Find the pension contributions section and enter the amount you paid into relief-at-source pensions for that year. Only include your own payments, not your employer's.
Submit the return and open your tax calculation to confirm the extra relief has been applied and your bill has gone down.
For earlier years, check old pension statements and claim separately, as relief can usually be backdated by up to four tax years.
Tips and common mistakes
Keep pension statements for each tax year so you can find the exact amounts you paid.
Do not enter net pay workplace pension contributions in the relief-at-source box, or you will claim relief you already had.
File before the 31 January deadline to avoid a penalty, and pay any tax owed by the same date.
This is general information, not personal tax advice. Ask HMRC or an accountant if your situation is unusual.
Questions
How do I know if my pension is relief at source?
Check your pension statement or ask the provider. If they add basic-rate tax relief on top of your payment, it is relief at source. Net pay schemes take contributions before tax instead.
Can I claim for previous tax years?
Yes, relief can usually be claimed for up to four earlier tax years. Gather your pension statements for those years and claim each year separately.
Do I need to do a full tax return?
Not always. If your only reason for filing is pension relief, you can contact HMRC with the figures instead. If you already file a return, add the contributions there.
This guide was drafted from the video's details and general task knowledge. It has not been checked against the full video. Check the video and relevant product instructions before following a procedure. Report a correction.
