Checks on pension relief claims tightened
- 16th September 2025
HMRC has introduced stricter rules for claiming pension tax relief after uncovering significant errors in applications. A review found that almost one third of claims made through PAYE tax codes were incorrect, leading to overclaims and compliance concerns.
The issue arises because personal pension contributions are made net of basic rate tax, meaning only higher and additional rate taxpayers should claim extra relief. However, HMRC identified that many basic rate taxpayers were submitting unnecessary claims. In some cases, relief had already been provided through payroll deductions, and in others individuals admitted to estimating their contributions instead of using the correct figures provided by their pension provider.
From 1 September 2025, HMRC has tightened the process. Claims can no longer be made by phone and must instead be submitted online, with postal claims reserved for those unable to use the digital system. Importantly, every claim now needs to be supported by documentary evidence each tax year. For personal pension contributions, this will typically mean a letter or annual statement from the pension provider confirming the amount paid.
Previously, supporting evidence was only required where annual contributions exceeded £10,000. By extending this requirement to all claims, HMRC is aiming to reduce incorrect applications and ensure relief is targeted correctly.
The changes do not affect those completing self-assessment tax returns, as pension relief continues to be dealt with in the return itself.
Higher and additional rate taxpayers across the UK – and Scottish taxpayers paying the intermediate rate or higher – remain entitled to claim extra relief where it has not been given automatically. For instance, an additional rate taxpayer can still benefit from an extra 25% in relief on their contributions.
Taxpayers who believe they are entitled to further relief should ensure they have accurate records from their pension provider before submitting a claim.
HMRC’s detailed guidance on claiming tax relief on pension contributions can be found here.
If you would like to discuss the above in further detail, please do not hesitate to contact us.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.
