💰 £1.3 Billion Left Unclaimed Every Year · 2025/26 Rules

Are You Owed £1,000s in Pension Tax Relief?

If you pay 40% or 45% income tax and contribute to a pension, your provider only claims basic 20% relief. HMRC does not automatically refund the rest. Decode your payslip in 60 seconds to see if you have an unclaimed tax refund.

40% / 45%
Higher Rate Earners
Over £50,270 taxable income per year
£1,000+
Average Annual Owed
On £5,000 gross annual contributions
4 Years
Backdating Window
Claim historic relief back to 2021/22
Box 1
Self Assessment Slot
Tax Reliefs ➔ Registered Schemes

Payslip Comparison Engine

Enter the numbers from your latest payslip. We'll cross-reference Gross vs Taxable Pay to detect your exact pension scheme type.

1. Total Gross Pay Before any tax or deductions
£
2. Taxable Pay ("Pay for Tax") Often labelled "Taxable Gross" or "Pay Subject to PAYE"
£
3. Employee Pension Deduction What you paid into the pension this period
£
4. Pension Label / Provider (Optional) Check the wording on your slip
🚨 Action Required: Relief at Source Detected
Estimated Annual Tax Refund Owed by HMRC
£1,050.00
Based on 40% Higher Rate tax band (£50,270+)
Your Out-of-Pocket Contribution £4,200.00 / yr
Provider Added (20% Basic Relief) +£1,050.00 / yr
Total Gross In Your Pension Pot £5,250.00 / yr
Extra 20% Relief Owed to You (HMRC) £1,050.00 / yr

📌 What to enter on your Self Assessment:

Go to: Tax reliefs ➔ Payments to registered pension schemes

Enter into Box 1: £5,250

⚠️ Warning: Enter the GROSS amount (£5,250), not just what you paid (£4,200). HMRC extends your basic rate band by this full gross figure.

Where to Look on Your Payslip

UK payroll software (Sage, BrightPay, Workday, ADP) presents these lines differently. Here are the 3 fields that tell the whole story:

SAMPLE UK PAYSLIP — MONTH 12
PAYE Ref: 120/AB12345 · Tax Code: 1257L
Period: Monthly
Payments & Earnings
Basic Salary £5,500.00
📍 1. Total Gross Pay £5,500.00
Deductions
PAYE Income Tax £984.20
National Insurance £248.50
📍 3. Pension Employee (EE) -£350.00
Total Deductions £1,582.70
Taxable Pay Comparison
Look at this box. If it matches Gross Pay, you're on Relief at Source!
📍 2. Pay for Tax £5,500.00
💡 The Golden Rule:
If Pay for Tax = £5,500 (Gross Pay), pension was deducted post-tax ➔ HMRC owes you higher-rate relief!

Popular UK Workplace Pension Schemes

Many workers assume all workplace pensions give full relief automatically. That is false.

Nest Pension Relief at Source
Nest operates strictly under Relief at Source. If you earn over £50,270 and your workplace uses Nest, you must claim higher rate relief yourself!
The People's Pension Mostly Relief at Source
Usually set up as Relief at Source unless your employer explicitly opted into a Salary Sacrifice arrangement.
Civil Service / NHS / Teachers Net Pay / Pre-Tax
Defined benefit public sector pensions are almost always Net Pay. Contributions come off before tax, so you get full relief automatically. Do not claim on SA.
Aviva / Scottish Widows / Royal London Depends on Contract
Group Personal Pensions (GPP) can be either Salary Sacrifice or Relief at Source. Use the decoder above to verify.
⏳

The 4-Year Backdating Opportunity

Under Section 34 of the Taxes Management Act 1970 (Overpayment Relief), HMRC allows you to claim unclaimed pension tax relief for up to 4 prior tax years.

2021/22 Tax Year
Expires 5 April 2026!
2022/23 Tax Year
Open to claim
2023/24 Tax Year
Open to claim
2024/25 Tax Year
Current filing window

Frequently Asked Questions

Can I use my P60 to claim pension tax relief?
No, you cannot rely on the P60 alone. A P60 shows your total taxable pay and total tax deducted for the tax year. It does not disclose whether your employer operates a Net Pay or Relief at Source scheme, nor does it detail the amount deducted for Relief at Source contributions. You must check your monthly payslips or your annual pension statement.
Do I have to register for Self Assessment just to claim pension relief?
If you already file Self Assessment (for side hustles, dividends, or rental income), you simply declare your gross contributions in Box 1 of the Tax Reliefs section. If you do not currently file Self Assessment and have no other untaxed income, you can claim the relief by contacting HMRC directly (via letter or phone) or submitting form P810 without doing a full tax return.
How does HMRC pay the refund?
On Self Assessment, the relief extends your basic rate tax band, reducing your overall tax bill or triggering a direct bank refund from HMRC. If you claim through PAYE outside Self Assessment, HMRC will typically adjust your tax code (e.g. giving you a higher tax-free personal allowance in subsequent pay packets) or issue a refund cheque/BACS transfer.
What if I earn between £100,000 and £125,140?
This is the famous 60% tax trap. For every £2 you earn over £100,000, you lose £1 of your personal allowance. Making pension contributions reduces your "Adjusted Net Income". If you contribute £10,000 gross into a pension, you save 40% income tax (£4,000) PLUS recover £5,000 of your personal allowance (£2,000 tax saved)—meaning an effective 60% tax relief!

Let TaxPilot Guide Your Self Assessment

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Not registered for Self Assessment yet? Check the 5 October deadline →