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TruePay UK
2025/26 tax year — rates from 6 April 2025

Pension tax relief calculator — what HMRC actually adds to your pot

Automatic relief, the provider top-up, and the higher-rate refund you may need to claim — separated out so you can see exactly what you're owed.

Quick answer

Every pension contribution attracts income-tax relief at your marginal rate — but only basic-rate relief (20%) arrives automatically. In a relief-at-source scheme, a higher-rate taxpayer contributing £4,800 gross gets the £960 top-up automatically and is owed £960.00 more from HMRC, claimable via Self Assessment or a tax-code adjustment. In a net-pay scheme, the full relief lands in your payslip with nothing to claim.

Personal allowance
£60,000 annual allowance
Applies in
Relief follows your income tax rates (Scottish rates apply in Scotland)
Calculation
Basic relief automatic; higher relief claimed
Annual salary
£60,000per year
£10,000£105,000£200,000
Scheme type
Goes into your pot
£4,800.00
gross contribution
Your true cost
£2,880.00
after every pound of relief
HMRC’s share
£1,920.00
of your £4,800 contribution
How it lands: you pay £3,840.00 from taxed income; your provider claims £960.00 basic-rate relief automatically, making the full £4,800 in your pot.
You’re owed £960.00 more: as a higher-rate taxpayer in a relief-at-source scheme, only basic relief is added automatically. The remaining £960.00 must be claimed from HMRC — through Self Assessment or by asking for a tax-code adjustment. Most people never claim it.
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Automatic relief vs relief you must claim

The scheme type decides everything. Net pay schemes (most workplace trusts) deduct contributions before tax, so relief at your full marginal rate is built into your payslip automatically. Relief at source schemes (most personal pensions and SIPPs, and some workplace schemes) take contributions from taxed pay, add 20% back automatically — and stop there.

That gap is where higher-rate taxpayers leak money. If you pay 40% tax and contribute through relief at source, half your relief needs claiming — every year. Estimates put unclaimed higher-rate relief in the hundreds of millions of pounds annually. The calculator above shows your claimable amount explicitly; if it’s not zero, a Self Assessment entry or a call to HMRC gets it back, and claims backdate four years.

Questions people ask