How to claim 40% tax relief on pension contributions?

Read the employment agreement guide now

Learn more

If an individual is a higher-rate tax payer, depending on the nature of the pension, they might be able to reclaim an extra 20% relief on their pension contributions.

The basic rate of 20% is automatically added to pension contributions but if an individual is paying 40% tax on their income over the higher-rate threshold, this will not be sufficient to provide adequate tax relief.

To claim back the tax paid at a higher rate into the pension, individuals should claim this money back via their self-assessment tax return. These should be completed after the tax year (post 5 April) retrospectively and can be completed online or in paper form. You make make sure that you return the tax return by the deadline.

Create your custom employment agreement now

Get Started

Looking for more answers?

More Questions