How do I claim additional tax relief on my pension contributions?

With relief at source, you pay a net contribution and the pension provider adds basic-rate tax relief. For example, an £80 payment becomes a £100 gross contribution when £20 is added. If eligible income has been taxed at 40%, further relief may be available on the gross contribution for the portion covered by that tax rate. Scottish Income Tax rates require a separate calculation. With a net pay arrangement, contributions are taken from earnings before Income Tax, so relief is normally already reflected in payroll. Salary sacrifice involves an employer contribution instead. Check your payslip and pension statement rather than assuming every pension uses the same method.

For relief-at-source contributions, keep statements showing your payments and the tax relief added, and use the gross amount when making the relevant claim. Depending on your circumstances, this can be done through Self Assessment or HMRC’s pension relief claim route. Do not include employer contributions as personal payments. The amount of personal contribution qualifying for relief is subject to the relevant earnings rules, and pension annual allowance limits must also be considered. A claim can affect other income-based calculations, so it helps to review the whole tax position. CASS can check that you claim the relief due without duplicating relief already received through payroll or the provider.