Back
Let us sort your Self Assessment today. Stress-free. For £119, all in. Learn more

Pension Tax Relief calculator

View other calculators
Calculate how much tax relief your pension provider should get you. And see how much additional tax relief you can claim from HMRC.
What pension scheme is your employer using?
Check with your employer if you’re not sure which one they’re using
Your annual income
£
Pension contributions
£
Select tax year
Pension contributions
£1,000
Automatic relief
£250
Pension contributions
£1,000
Automatic tax relief
£250
Your pension provider will automatically get this tax relief for you.
You don’t need to do anything.
Extra tax relief you can claim
£0

How your pension tax relief is calculated

HMRC will basically give you back the tax that you paid on the income that you used for your pension contribution.

In your case you earned £49,000 and contributed £1,000 to your pension.

Automatic Tax relief

You get £250

Your pension provider will automatically get this for you and add it to your pension pot.

Your pension pot will now be worth £1,250.

Common questions

You’re not alone. If you’ve got a question about tax we’ve probably heard it before and have an answer, or we can walk you through what to do.

More self-service guides and FAQs

There are two main ways to save money into your pension:

  1. Net pay or salary sacrifice: your employer will deduct the pension contribution before calculating tax on your pay.
  2. Relief at source: it means that your contributions are taken from your net pay (after your wages are taxed). Then your pension provider automatically claims tax relief for you from HMRC, adding the basic tax rate of 20% to your pension contributions. If you’re a higher rate taxpayer, you can submit a tax return and claim the rest (another 20-25%). This is how most private pensions and SIPPs work.

You can only claim the pension tax relief if your pension contributions are not made using “net pay” or “salary sacrifice” – check with your employer.

Most people in full-time jobs who only have PAYE income never have to bother with tax returns.

The only times when you need to submit a Self Assessment tax return are:

If you’re not sure which one applies to you, read our guide to who needs to file a tax return here – it’s a long list

The UK tax year for individuals starts April 6th and ends April 5th of the following year. From then, you have until January 31st to complete your online tax return for the previous tax year.

More on tax dates can be found here

The tax code is just a series of numbers and letters that tells HMRC how much tax you should be paying.

The numbers in your tax code tell your employer or pension provider how much tax-free income you are entitled to in that tax year.

The most common one for 2019/20 will be 1250L:

  • 1250 because the Personal Allowance in 2019/20 is £12,500
  • L for the standard Personal Allowance

If you take a second job, then you don’t get a personal allowance for this one, so you need to make sure that the job that pays you the most is the one with “L” and not “BR”.

You can read more about tax codes and what they mean here

There are many tax-free allowances in the UK:

  • everyone in the UK is entitled to £12,500 tax-free income – this is called the Personal Allowance
  • if you made any capital gains (sold shares, property, etc.), the first £12,000 is tax-free
  • first £2,000 from dividends is also tax-free
  • same with the first £5,000 from savings interest (although it can be less – it depends on your tax band)

There are also a few tax-free allowances you can claim instead of expenses:

  • you can claim £7,500 if you rent out a room from your own home
  • you can also claim £1,000 if you are self-employed or a landlord
  • if you earn under these amounts you don’t even need to declare them

You can see a full list of tax-free allowances here

 

Need help claiming your Pension Tax Relief?

Figuring out how much Pension Relief you are owed is hard.

Filing a personal tax return without making a mistake is even harder.

At TaxScouts, we do it for you online, fast, and for just £119, all in.

How it works

1. Answer a few simple questions

And we mean a few. After a couple of minutes of answering questions online we’ll have everything we need to start working on your tax return.

2. Then get paired with a tax accountant

That’s right, you’ll be matched with a real accountant who is best suited to prepare your return. Plus, they’re on hand for questions whenever you need.

3. We file your Self Assessment for you

Once you’ve signed off your return, your TaxScouts accountant will file your return online with HMRC. That’s it! We told you it was simple.