FOI ref: FOI-2024-2018
You asked
I am aware that many workplace pension schemes now use salary sacrifice and some trust based and Defined Benefit schemes collect member contributions from gross pay.
My question relates to members who are having contributions deducted via the ‘relief at source’ method or net of 20% tax from net take home pay. The pension provider will reclaim the 20% tax relief for all such members, but the individual member or employee would need to reclaim any higher rate or additional rate tax. This reclaim should be based on their gross (netted up by 20%) contribution.
I would imagine and hope that most people submitting self-assessment tax returns will be reclaiming the correct amount. However I understand this is only now mandatory for those with income over £150K with the tax bands now frozen more people will be paying higher rate tax.
Can you please provide an estimate of how many people in the UK, who are entitled to this relief, are not reclaiming the higher or additional rate tax relief on their pension contributions and how much this unclaimed tax relief on individuals pension contributions amounts to each tax year? And for the last three tax years?
We said
Thank you for your request.
Unfortunately, we do not hold the information requested.
HM Revenue and Customs (HMRC) would be better placed to respond. They can be contacted via the following email address: foi.request@hmrc.gov.uk.