Our Higher Rate Pension Tax Relief Calculator quickly works out how much you are entitled to claim. The only number you need is the total amount you have paid into a private pension over the last four tax years. The free calculator then tells you how much pension tax relief you are owed, based on that individualised figure.
Why use the Higher Rate Pension Tax Relief Calculator?
The Higher Rate Pension Tax Relief Calculator answers the important question ‘Is it worth making a claim?’ quickly, simply and based on your own figures. With minimal effort, you can see the value of your potential pension tax relief claim. Then you can decide if it’s worth investing a few minutes of your time contacting us to claim the few thousand pounds you are owed.
The calculator works out 20% of your total pension contributions over the last four tax years. You are only allowed to backdate claims for Higher Rate Pension Tax Relief for the last four tax years, beyond that the money is gone for good.
Why would I be entitled to claim Higher Rate Pension Tax Relief?
To encourage people to put money into private pensions, government policy states that you can claim tax relief on your pension payments at the highest rate of tax relief you pay. So, if you are in the 40% Higher Rate tax bracket, you can claim tax relief on your private pension contributions at 40%.
20% is automatically applied (because all taxpayers pay a minimum 20%), but you have to make a claim for the additional 20% to be refunded to you.
How do I know if I’m a Higher Rate Taxpayer?
The income tax bands usually change every tax year with the new Budget, so you need to check where your earnings sit this year and for the prior years you are including in your claim.
Does this include non residents?
It can include UK non residents but there are double taxation treaties which exist between HMRC and many countries throughout the world which can mean additional relief is sometimes possible. You can use out non resident pension tax relief guide to find out more.
Making a Pension tax relief claim
There are different systems in place to claim this tax relief depending on whether you are part of PAYE or Self assessment. Taxpayers that are part of the PAYE system will need to submit an official, written claim for their Higher Rate Pension Tax Relief. Those that submit self assessment tax returns must include these private pension contributions and your overpayment relief claim will see your tax position adjusted accordingly.
