Higher Rate Taxpayer? 5 Tax Reliefs You're Probably Not Claiming

If you earn over £50,270, you're in the higher-rate tax bracket—paying 40% on every pound above that threshold.

But here's what many higher earners don't realise: the tax system includes specific reliefs designed to reduce your bill. And most people don't claim them.

HMRC won't chase you to take these reliefs. It's your responsibility to know they exist and claim them.

Here are five tax reliefs that higher-rate taxpayers commonly miss.

1. Pension Tax Relief (The Big One)

Potential value: £500 - £6,000+ backdated

This is the most commonly missed relief for higher-rate taxpayers, and it's worth the most money.

If you contribute to a "Relief at Source" workplace pension (like NEST, People's Pension, Aviva, or Scottish Widows), your pension provider only claims 20% basic-rate tax relief from HMRC.

But you pay 40% tax. You're entitled to the extra 20%—and you have to claim it yourself.

Example: Earning £70,000 with a 5% pension contribution (£3,500/year)

• Your provider claims 20%: £700
• You're owed an extra 20%: £700/year
• Over 4 backdated years: £2,800

Most higher-rate taxpayers have never claimed this. HMRC estimates over £1 billion in pension tax relief goes unclaimed every year.

How to claim: Write to HMRC, use Self Assessment, or use a claim preparation service like PensionReclaim.

2. Gift Aid Top-Up

Potential value: £50 - £500+ per year

When you donate to charity with Gift Aid, the charity claims 25% from HMRC (representing the basic-rate tax you've already paid).

But as a higher-rate taxpayer, you can claim an additional 25% back for yourself.

Example: You donate £1,000 to charity with Gift Aid

• Charity claims £250 from HMRC (basic rate)
• You can claim £250 personally (higher-rate relief)

Many higher earners donate hundreds or thousands to charity each year and never claim their personal relief.

How to claim: Through your Self Assessment tax return, or by contacting HMRC directly if you don't file Self Assessment.

3. Marriage Allowance (For Some)

Potential value: Up to £252 per year

This one's often overlooked because people assume it's only for basic-rate taxpayers. That's partially true—but the benefit flows to the higher earner.

If your spouse or civil partner earns under the Personal Allowance (£12,570), they can transfer £1,260 of their unused allowance to you. This reduces your tax bill by up to £252 per year.

Catch: This only works if YOU (the higher earner) are paying basic-rate tax on at least some income. If your entire income is taxed at 40%+, this won't help.

How to claim: Apply online at gov.uk/marriage-allowance. Can be backdated up to 4 years.

4. Professional Subscriptions and Fees

Potential value: £50 - £300+ per year

If you pay professional subscriptions or union fees required for your job, you can claim tax relief on the full amount.

HMRC maintains a list of approved professional bodies. Common examples include:

• Chartered Institute of Personnel and Development (CIPD)
• Royal Institution of Chartered Surveyors (RICS)
• British Medical Association (BMA)
• Law Society
• Institution of Civil Engineers (ICE)
• Chartered Institute of Management Accountants (CIMA)

If your employer pays these fees, no relief is available. But if you pay personally, you can claim.

Example: £300 annual subscription as a 40% taxpayer = £120 tax relief

How to claim: Through Self Assessment, or use form P87 if you don't file a return.

5. Work From Home Allowance

Potential value: £62 - £125+ per year

If you're required to work from home (not just choosing to), you can claim tax relief on household costs.

The flat-rate option is simple:

• £6/week = £312/year
• 40% tax relief = £125/year

Alternatively, you can claim based on actual additional costs (electricity, heating, etc.), but you'll need records.

Important: This is for people who MUST work from home as part of their job—not hybrid workers who could go to the office but prefer not to. The rules tightened post-pandemic.

How to claim: Through Self Assessment, or apply online at gov.uk for the flat-rate amount.

Why Doesn't HMRC Tell You About These?

HMRC's position is clear: tax reliefs are your responsibility to claim. They process claims correctly when submitted, but they don't proactively inform you about reliefs you're missing.

The result is billions of pounds in unclaimed relief every year—money that belongs to taxpayers but sits with HMRC because nobody asked for it.

How to Check What You're Owed

For most of these reliefs, you'll need to either:

1. File a Self Assessment return (if you have income HMRC doesn't know about)
2. Contact HMRC directly (for simple claims like pension relief)
3. Use form P87 (for employment expenses under £2,500)

The biggest missed relief—pension contributions—can be checked in under 2 minutes using our free calculator. It shows exactly how much you could reclaim across all eligible tax years.

The Bottom Line

Being a higher-rate taxpayer means you pay more tax. But it also means you're entitled to more relief when you contribute to pensions, donate to charity, or pay professional fees.

The difference between taxpayers who claim and those who don't can be thousands of pounds over a few years.

HMRC won't remind you. The responsibility is yours.

Start with pension relief—it's typically the largest amount and the easiest to overlook. Then work through the others.

Your money. Your move.