Your Contribution
£0
Basic Rate Relief (20%)
£0
Higher Rate Relief
£0
Total Relief
£0
Total in Pension
£0
Effective Cost to You
£0
How Your Relief Works
Income Tax Saved
£0
NI Saved (You)
£0
Employer NI Saved
£0
Total Savings
£0
Goes Into Pension
£0
Salary Sacrifice Breakdown
Your Annual Allowance
£60,000
Total Available
£60,000
Your Contributions
£0
Remaining Allowance
£60,000
Understanding Pension Tax Relief
Basic Rate
20%
Added automatically
Higher Rate
40%
Claim via Self Assessment
Additional Rate
45%
Claim via Self Assessment
Example: £100 Pension Contribution
| Tax Rate | You Pay | Tax Relief | In Pension | Effective Cost |
|---|---|---|---|---|
| Basic (20%) | £80 | £20 | £100 | £80 |
| Higher (40%) | £80 | £40 | £100 | £60 |
| Additional (45%) | £80 | £45 | £100 | £55 |
Relief at Source vs Net Pay
| Feature | Relief at Source | Net Pay |
|---|---|---|
| How it works | Pay from taxed income, provider claims 20% relief | Contributions taken before tax calculated |
| Basic rate relief | Added by pension provider | Automatic via payroll |
| Higher rate relief | Claim via Self Assessment | Automatic via payroll |
| Common with | Personal pensions, SIPPs | Some workplace pensions |
HMRC Compliant
Secure & Private
4.9/5 Rating
500K+ Users
Annual Allowance 2025/26
Standard Allowance
£60,000
Per tax year
Tapered Allowance
£10,000 min
Income over £260k
Money Purchase AA
£10,000
If accessed pension
Carry Forward Rules
- You can carry forward unused allowance from the previous 3 tax years
- Must have been a member of a pension scheme in those years
- Must use current year's allowance first
- Maximum contribution still limited to 100% of earnings
Frequently Asked Questions
How does pension tax relief work?
When you contribute to a pension, you get tax relief. Basic rate (20%) is added automatically. Higher/additional rate taxpayers claim extra via Self Assessment. For every £80 you pay, HMRC adds £20, making £100 in your pension.
How much pension tax relief can I claim?
You can get relief on contributions up to 100% of your annual earnings or £60,000 (Annual Allowance), whichever is lower. Unused allowance from the previous 3 years can be carried forward.
What is the difference between relief at source and net pay?
Relief at Source: Pay from taxed income, provider claims 20% from HMRC. Net Pay: Contributions taken before tax, giving full relief automatically.
Do I need to claim higher rate pension tax relief?
If using 'Relief at Source', yes - claim via Self Assessment or call HMRC. If using 'Net Pay' or salary sacrifice, relief is automatic.
What is the pension annual allowance for 2025/26?
£60,000 standard, reducing to £10,000 minimum for those with adjusted income over £260,000. Money Purchase AA (if you've accessed pensions) is £10,000.
Related Calculators
Last updated: January 2026 | Verified with latest UK rates
Expert Reviewed — This calculator is reviewed by our team of financial experts and updated regularly with the latest UK tax rates and regulations. Last verified: January 2026.
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Understanding Your Results
Our Pension Tax Relief Calculator provides:
- Instant calculations - Results appear immediately
- Accurate formulas - Based on official UK standards
- Clear explanations - Understand how results are derived
- 2025/26 updated - Using current rates and regulations
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