If you earn over £50,270 and pay into a workplace pension, there's a good chance HMRC owes you money. Thousands of pounds, in fact.
This isn't a loophole or a grey area. It's a legitimate tax relief that most higher-rate taxpayers simply don't know about.
What is Higher Rate Pension Tax Relief?
When you contribute to a "Relief at Source" pension (like NEST, The People's Pension, or most workplace schemes), your pension provider automatically claims 20% basic-rate tax relief from HMRC on your behalf.
But if you're a higher-rate taxpayer (earning over £50,270), you're entitled to 40% relief on your pension contributions. That extra 20%? You have to claim it yourself.
Most people don't.
Who is Eligible?
You're likely eligible if you tick all three boxes:
- You earn over £50,270 per year (higher-rate taxpayer)
- You contribute to a Relief at Source pension scheme
- You haven't already claimed it on a Self Assessment return
Not sure if your pension is Relief at Source? Check your payslip. If your pension contribution is taken after tax is calculated, you're almost certainly in a RAS scheme.
How Much Could You Claim?
The amount depends on your salary and contribution rate. Here are some examples:
Earning £60,000, contributing 5%:
- Annual contribution: £3,000
- Extra relief owed: £600 per year
- Over 4 years: £2,400
Earning £80,000, contributing 5%:
- Annual contribution: £4,000
- Extra relief owed: £800 per year
- Over 4 years: £3,200
Earning £100,000, contributing 8%:
- Annual contribution: £8,000
- Extra relief owed: £1,600 per year
- Over 4 years: £6,400
How Far Back Can You Claim?
You can claim for the four most recent complete tax years. Each year can be claimed until 5 April four years after it ends:
- 2022/23 - deadline 5 April 2027
- 2023/24 - deadline 5 April 2028
- 2024/25 - deadline 5 April 2029
- 2025/26 - deadline 5 April 2030
(2021/22 closed on 5 April 2026.) The current tax year is dealt with through your tax code or your Self Assessment return rather than a backdated claim. The oldest year drops off each April, so don't wait too long.
How to Claim: Your Options
Option 1: Self Assessment
If you filed a Self Assessment return for the year, HMRC requires you to claim on that return: enter the gross contribution (what you paid × 100/80) in the "Payments to registered pension schemes where basic rate tax relief will be claimed by your pension provider" box. You can amend a return for up to 12 months after its 31 January filing deadline; after that you make a written "overpayment relief" claim.
Option 2: Write to HMRC or claim online
If you're taxed through PAYE, you can write to HMRC (Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS) or use HMRC's online "Claim tax relief on your private pension payments" service. Since 1 September 2025 HMRC no longer takes these claims by phone, and every claim must include evidence - a statement from your pension provider showing what you paid in each tax year. Claims without it are sent back. You also need to quantify the claim correctly: relief is only due on the part of your contribution that falls in the higher rate band, which is where most DIY claims go wrong.
Option 3: Use a Claim Preparation Service
Services like PensionReclaim generate all the paperwork for you - personalised letters, calculations for each tax year, and step-by-step instructions. You review, sign, and post. HMRC processes the rest.
What Happens After You Claim?
HMRC aims to respond to online claims within 28 working days; postal claims typically take 8-16 weeks. For earlier years HMRC issues a tax calculation (P800) and you have the money paid to your bank account through the HMRC app or personal tax account, or receive a cheque. HMRC does not pay to bank details written in a letter. For the current year HMRC usually adjusts your tax code instead.
Common Questions
Is this legitimate? Yes. This relief is established under Section 192 of the Finance Act 2004. It's documented in HMRC's own guidance.
Why doesn't my employer sort this out? Your employer handles payroll, not your personal tax affairs. They have no way of knowing your total income or other tax reliefs you might be entitled to.
What if I've changed jobs? You can still claim. You'll just need contribution details from each employer's pension scheme.
Next Steps
Not sure if you're owed money? Use our free calculator to check your eligibility in under 2 minutes. It takes your salary, contribution rate, and years of employment to estimate your potential claim.
The average PensionReclaim customer claims back over £2,500. Some claim over £6,000.
Don't leave your money with HMRC.
See what HMRC owes you
Our free calculator works it out the way HMRC does. Then, for £99, we produce the correctly worded claim letter, the year-by-year calculation and the evidence checklist HMRC now requires - ready to sign and post.
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