Calculate pension relief at source for higher-rate taxpayers. Find how much extra tax relief to claim via Self Assessment on top of the basic 20% added by your pension provider.
Relief at source is a method of granting pension tax relief where the employee pays net contributions (after tax) and the pension provider claims 20% basic rate tax relief from HMRC, adding it to the pension pot. For example, you pay £800 and the provider claims £200, putting £1,000 into your pension. Higher-rate and additional-rate taxpayers must claim the extra relief separately via Self Assessment.
Relief at source is commonly used by: NEST, The People's Pension, Smart Pension, and many personal pensions and SIPPs. Employer workplace pensions that are provided through insurance companies (like Scottish Widows, Aviva, or Standard Life group pensions) often use relief at source. Check with your pension provider or HR department if unsure.
Higher-rate taxpayers (40%) and additional-rate taxpayers (45%) who are in relief at source schemes can claim the extra relief through their Self Assessment tax return. Under 'pension contributions', enter the gross amount (the net amount paid + 20% added by provider). HMRC will then calculate the extra 20% or 25% relief and either reduce your tax bill or provide a refund.
Yes — you can claim extra pension tax relief for up to 4 previous tax years through Self Assessment. Submit amended returns or contact HMRC directly. For example, in 2025/26 you can claim back to 2021/22. Many higher-rate taxpayers are unaware they can claim, leaving significant unclaimed relief each year.
For every £1,000 paid into a relief-at-source pension: basic-rate taxpayer (20%) — costs £800 net; higher-rate taxpayer (40%) — costs £600 net (£800 - £200 extra from HMRC); additional-rate taxpayer (45%) — costs £550 net. Net pay scheme users receive relief automatically without needing to claim.