Pension savers told 'don't miss substantial rebate' as deadline days away As the January 31 deadline for HMRC self-assessment looms, a financial expert warns that taxpayers must not only settle their dues but also ensure they're reaping the benefits of pension tax relief.
Gary Smith, a financial planning partner at Evelyn Partners, emphasised: "Pension tax relief is the outstanding benefit of the UK's private pension saving system – it's one of the main reasons advisers encourage most people who can afford to, to save into a pension.
Mr Smith warned: "Many savers completing tax returns are so focused on making sure they are not caught out by HMRC for under-reporting taxable income or assets, that they forget to collect pension tax relief they are owed and lose out on a substantial rebate.
Research from PensionBee in 2023 indicated that hundreds of thousands of higher and additional rate taxpayers failed to claim approximately £250 million in pension tax relief annually.
Others have no other reason to get involved in self-assessment, but they need to remember that they might have to for this purpose – although it is possible to claim back tax relief without having to complete a tax return.
