HMRC delay could affect over a million workers on £100 top-up Over a million low-income workers will reportedly have to wait longer for a long-promised pension tax relief top-up, as HMRC confirmed a delay in payments originally planned for this year.
Under the current system, workers whose employers use a "net pay" arrangement for pension contributions do not receive any tax relief if their income is below the £12,570 personal allowance.
Unlike traditional pension tax relief, the top-up will be paid directly into workers' bank accounts rather than into their pension funds.
The government had initially pledged to address a long-standing issue in pension tax relief that has unfairly left many of the lowest earners without the extra boost others receive.
These workers have already missed out on around £70 in tax relief for 2024/25 and will be forced to wait even longer to get what they are owed.
