Claim For Overpayment Relief Pension Contributions UK

Here is a short summary with information on how to claim for overpayment relief pension contributions UK.

You can get a tax break on private pension contributions worth up to 100 percent of your annual income.

You get tax relief automatically if:

  • an employer takes away your workplace pension contributions before income tax is deducted
  • the income tax rate is 20 percent – your pension provider will claim it as tax relief and add it to your pension fund (“relief at source”)

If you’re Scottish income tax rate is 19 percent, your pension provider will claim tax relief at a rate of 20 percent. You do not have to pay the difference. UK tax relief is also available on contributions made to certain types of pension plans abroad. It’s up to you to make sure you don’t get a tax break on pension contributions that are worth more than 100 percent of your annual income. HM Revenue & Customs (HMRC) may ask you to pay any amount that exceeds this limit.

To get relief at the source

Before you pay into a plan, you must agree to certain conditions about your contributions (“make statements”). Your pension provider will tell you what they are.

You must also:

  • full name and address
  • Birthdate
  • National insurance number
  • employment status – or tell them if you are retired, full-time student, caregiver, or under 16

Your employer can do this for you if you are automatically enrolled in their pension plan. Your pension provider will inform you if this is the case and ask you to confirm that your details are correct. You must do this within 30 days.

When you have to claim a tax relief

You may be able to claim tax relief on pension contributions:

  • you pay income tax at a rate higher than 20 percent and your pension provider claims the first 20 percent for you (relief at source)
  • your pension plan is not set up for automatic tax relief
  • someone else pays his pension

Relating to Claim For Overpayment Relief Pension Contributions UK:


You earn £ 60,000 in tax year 2019 to 2020 and pay 40 percent tax on £ 10,000. You put £ 15,000 into a private pension. And You automatically get tax relief at source for the total of £ 15,000.

And You can claim an additional 20 percent tax relief on £ 10,000 (the same amount you paid a higher rate on) through your self-assessment tax return. You don’t get additional relief with the other £ 5,000 you put into your pension.

If you don’t pay income tax

You still automatically get 20 percent tax relief on the first £ 2,880 you pay into a pension each tax year (April 6 – April 5) if both of the following apply:

  • you don’t pay income tax, for example, because you have a low income
  • your pension provider claims a tax relief at a rate of 20 percent (relief at source)

What should I do to get the money?

If you are a high rate taxpayer paying a personal pension, you will need to claim the additional 20 percent or 30 percent through HM Revenue & Customs.

This is done through a self-assessment form or tax return form, in which you must register. If you are already registered for the self-assessment, HMRC will send you a tax return to complete each year. HMRC will provide you with a “unique taxpayer reference“, and then you will receive a letter in April of each year urging you to complete your return. You can complete the declaration online or through a paper application.

If you complete a tax return to claim a refund of your relief, you will receive the difference as a refund at the end of the tax year, a reduction in your tax liability, or HMRC will change your tax code. You will need to provide HMRC with the following details if you call or write:

  • Your name
  • Your Address
  • National insurance number
  • Tax office address
  • Your gross annual pension contribution (including your current aid)
  • You must sign and date the letter

Is there a limit to the amount of tax relief I can claim?

Getting your pension contributions is a great tax relief. As already mentioned, it is essentially free money from the government.

Government funds are not unlimited as we all know, so there is a limit to the amount of tax relief you can claim. You can currently claim tax relief on pension contributions of up to £ 50,000 a year and £ 1.8 million over your lifetime, although the lifetime allowance will be reduced to £ 1.5 million from April.

Before you go, I hope this above article claim for overpayment relief pension contributions UK will be helpful and informational for you.

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