How Do I Reclaim Missed Higher Rate Pension Relief Through Self Assessment

At Towerstone, we specialise in higher rate pension tax relief advice and have written this article for taxpayers who need to correct past claims. The purpose of this article is to explain how to reclaim missed relief and what information is required, helping you make informed decisions.

This is one of the most valuable tax corrections you can make and in my opinion it is one of the most commonly missed. I regularly see higher rate taxpayers who have paid thousands of pounds into pensions over several years and never received the extra tax relief they were entitled to. Not because they were doing anything wrong, but because they assumed the system would sort it out automatically.

From experience, it often comes to light after a job change, a salary increase, or a casual conversation where someone mentions claiming pension relief through self assessment. The reaction is usually the same. Surprise followed by frustration followed by relief when they realise the money can still be reclaimed.

The good news is this. If you have missed higher rate pension relief, you can usually reclaim it through self assessment. You can often go back several tax years. And the process, while detailed, is very manageable once you understand how it works.

In this guide I will explain exactly how higher rate pension relief works, why it is often missed, how to reclaim it through self assessment step by step, what information you need, how far back you can go, and the mistakes I see people make that delay or reduce their refund.

First Let’s Be Clear on What You Are Reclaiming

When you pay into a pension, the government gives you tax relief to encourage saving for retirement.

For most people:

Basic rate tax relief of 20 percent is given automatically

Higher rate tax relief of an additional 20 percent is not automatic in many cases

If you pay tax at 40 percent, you are entitled to 40 percent relief on pension contributions. If only 20 percent has been applied, the remaining 20 percent is sitting with the taxman until you claim it.

That unclaimed portion is what you are reclaiming.

The rules are set by HM Revenue & Customs and explained in guidance on GOV.UK, but in my opinion they are not explained clearly enough to taxpayers.

Why Higher Rate Pension Relief Is Often Missed

From experience, higher rate pension relief is missed for three main reasons.

Relief at Source Confusion

Many pensions operate on a relief at source basis.

This means:

You pay a net contribution

The pension provider adds 20 percent basic rate relief

The pension pot is topped up automatically

What does not happen automatically is the extra relief for higher rate taxpayers.

People see tax relief being added and assume that is the full amount. It is not.

Job Changes and Scheme Changes

Changing jobs often means changing pension schemes.

You might move from:

A net pay scheme where relief was automatic

To a relief at source scheme where it is not

From experience, people often do not realise this change has happened and stop receiving higher rate relief without noticing.

Salary Increases Mid Year

Another common scenario is where someone becomes a higher rate taxpayer part way through a tax year.

For example:

Salary increases from £48,000 to £60,000

Pension contributions continue as normal

Basic rate relief continues to be added

Higher rate relief is never claimed

From experience, this is one of the most common missed relief situations.

How Much Is Higher Rate Pension Relief Worth?

It is often more than people expect.

For every £1,000 of gross pension contribution:

Basic rate relief gives £200

Higher rate relief gives an additional £200

That means £1,000 into your pension may only cost you £600 in real terms.

If you miss the higher rate relief, it costs you £800 instead.

Over time this adds up quickly.

From experience, people reclaim anything from a few hundred pounds to well over £10,000 depending on how long the relief was missed.

When You Need to Use Self Assessment

You usually reclaim missed higher rate pension relief through self assessment if:

You already complete a self assessment tax return

You have multiple sources of income

You want to reclaim for previous tax years

The amount involved is significant

Even if you are normally PAYE only, self assessment is often the cleanest route for reclaiming missed relief.

In my opinion, self assessment gives you more control and clarity than relying on tax code adjustments.

What You Need Before You Start

Before you log in and start amending or submitting a return, gather the right information.

You will need:

The tax year or years you are reclaiming for

Your gross pension contributions for each year

Confirmation of how much you personally paid

Pension statements or contribution summaries

P60s or P45s showing income

Any existing self assessment records

Gross contributions are the key figure. This is the amount after basic rate relief has been added.

For example:

You paid £8,000 net

The provider added £2,000

Gross contribution is £10,000

That £10,000 is the figure you enter.

From experience, using the net figure is the most common and costly error.

Step by Step: Reclaiming Through Self Assessment

Step 1 Log In or Register for Self Assessment

If you already complete self assessment, log into your account.

If you do not, you will need to register. This can take time so do not leave it too late.

Registration and login are done via GOV.UK.

Step 2 Select the Correct Tax Year

You must reclaim relief in the correct tax year.

If you are reclaiming for the current year, complete the return as normal.

If you are reclaiming for previous years:

Select the year you want to amend

Open the submitted return

Choose the option to amend

From experience, people often try to reclaim everything in one year. That is not how the system works.

Step 3 Go to the Pension Contributions Section

Within the self assessment return look for the section covering:

Payments to registered pension schemes

This section asks for:

Total gross pension contributions you made

This does not include employer contributions. Only your personal contributions count here.

Step 4 Enter the Gross Contribution Amount

Enter the gross amount for that tax year.

Using the earlier example:

Net paid £8,000

Basic rate relief added £2,000

Gross amount to enter £10,000

Double check this figure. From experience this is where most mistakes happen.

Step 5 Review the Tax Calculation

Once entered, the system will recalculate your tax.

You should see:

A reduction in higher rate tax due

Or an increase in refund

Or a reduction in the amount you owe

The mechanism works by extending your basic rate band so that more income is taxed at 20 percent instead of 40 percent.

Step 6 Submit or Resubmit the Return

Once you are satisfied:

Submit the return

Or resubmit if amending

HMRC will then:

Process the return

Issue a refund

Or adjust your tax account

Refunds are usually paid directly to your bank account.

From experience, this often happens quicker than people expect.

How Far Back Can You Reclaim?

You can usually reclaim missed higher rate pension relief for up to four tax years.

For example:

In the 2025 to 2026 tax year

You can usually amend returns back to 2021 to 2022

Older years are normally out of time unless exceptional circumstances apply.

From experience, acting sooner rather than later is important to avoid losing entitlement.

What If You Were Not in Self Assessment at the Time?

This is very common.

If you were PAYE only and never filed a return, you can still reclaim.

You will usually need to:

Register for self assessment

File a return for the relevant year

Include the pension contribution details

Alternatively, for small amounts and recent years, HMRC may allow claims outside self assessment, but from experience self assessment is the most reliable route.

What About Employer Contributions?

Employer contributions do not qualify for personal tax relief.

They are already paid gross and do not go into your self assessment pension relief calculation.

Only your personal contributions are relevant here.

From experience, including employer contributions is another common error.

What If You Used Salary Sacrifice?

If your pension contributions were made via salary sacrifice:

They are treated as employer contributions

You already received full tax relief

There is usually nothing to reclaim

From experience, people sometimes try to reclaim relief on salary sacrifice contributions and HMRC will reject it.

Common Mistakes I See

From experience, these are the most frequent issues that delay or reduce refunds:

Entering net instead of gross contributions

Including employer contributions

Claiming in the wrong tax year

Assuming relief is automatic

Not amending previous returns

Missing the four year deadline

Each of these can usually be corrected, but they slow things down.

How Long Does It Take to Get the Money Back?

This varies, but from experience:

Simple online amendments can be processed in a few weeks

Refunds are often issued shortly after

More complex cases may take longer

If you are reclaiming several years, each year is processed separately.

Should You Use an Accountant?

In my opinion:

Simple cases can be handled personally

Complex income or multiple pensions benefit from advice

If you are unsure, it is better to ask before submitting than to fix errors later.

My Honest View From Experience

Higher rate pension tax relief is one of the most generous but poorly understood parts of the UK tax system.

From experience, people miss it not through avoidance or negligence but through assumption.

They assume:

Payroll sorted it

The pension provider handled it

HMRC would adjust automatically

None of those assumptions are safe.

The system relies on you claiming what you are entitled to.

What I Advise People to Do Now

If you suspect you have missed higher rate pension relief, my advice is:

Review the last four tax years

Identify your gross pension contributions

Check whether you claimed relief

Amend returns where necessary

Do not delay

In my opinion, this is one of the highest return financial tasks you can do in a short amount of time.

Where this leaves you

So how do you reclaim missed higher rate pension relief through self assessment?

You identify the correct tax years, enter your gross pension contributions in the pension section of your return, submit or amend the return, and allow HMRC to recalculate your tax.

It is not complicated once you understand the mechanics, but it does require action.

From experience, the people who take the time to do this almost always wish they had done it sooner.

It is your relief. It is your money. And the system will not give it back unless you ask.

If you would like to explore related pension guidance, you may find How does pension tax relief work for directors of limited companies and How does salary sacrifice affect higher rate pension relief useful. For broader pension guidance, visit our pensions knowledge hub.