Tax relief on pension

Squint

I have been really bad with my pension and just too busy so paid no attention to it. I have only just worked out that as a higher rate tax payer you have to claim tax relief. I have missed out on over 20 years of tax relief as a result!

I am now going to sort it out, but I have read that lower rate tax payers don't have to claim relief.  Looking at my pension statement I get £500 of pension added a month as my own contribution and £500 is deducted from my gross pay.  I don't think I am getting lower rate tax relief on it either as a result.  I want to ask whether I should have expected an extra amount to be added in lower rate tax relief or do you get your tax code changed?  

MX5huggy

Sounds like it’s a Salary Sacrifice contribution so no tax relief is due as you have not paid any tax or NI (the real bonus of SS) on the money. 

Grumpy_chap

Was the OP a higher rate tax payer for all of those past 20 years?

Was SS available as long ago as 20 years?

Has the OP been in the same arrangement for all of the 20 years referenced?

Dazed_and_C0nfused

You only need to claim higher rate tax relief on "relief at source" contributions.

If you are contributing £500 and get £500 in your pension fund that isn't relief at source.  Relief at source would result in a fund of £625.

Your contribution sounds more like net pay however that is less common with a DC pension.

It could be salary sacrifice but that means you haven't been contributing to the pension and as such no tax relief at all is due.  Salary sacrifice means you have agreed to a lower salary in return for your employer contributing more to your pension.