HMRC Changes Pension Tax Relief Claims: What Savers Need to Know

Tax Queen

Tax Expert @ Pie

3 min read

HMRC changed how certain pension tax relief claims are made from 1 September 2025. Telephone requests for Personal Pension Relief are no longer accepted, so eligible taxpayers must claim online or by letter. The change mainly affects people who need to claim additional tax relief on pension contributions.

HMRC has also lowered the threshold for requesting evidence when taxpayers make new claims for higher-rate or additional-rate relief through their tax code. This means more people may need to provide pension statements or other evidence of their contributions. The change does not mean everyone with a pension needs to make a separate claim.

It is also important to understand the difference between claiming pension tax relief and dealing with HMRC pension annual allowance charges. These are separate parts of the pension tax system and can apply to the same taxpayer. Knowing how both work can help you avoid unexpected tax charges.

Why the Change Matters

From 1 September 2025, HMRC stopped accepting telephone requests for Personal Pension Relief. Claims must now be made online or by letter, depending on the taxpayer's circumstances. People completing a Self Assessment tax return generally claim pension tax relief through their return.

HMRC also introduced a lower evidence threshold for new requests for higher-rate or additional-rate relief through an individual's tax code. As a result, more taxpayers may be asked to prove their pension contributions. This can include providing information or statements from the pension provider.

The change affects how some claims are made rather than removing the underlying entitlement to tax relief. The correct process depends on the type of pension arrangement and how tax relief is already provided. Keeping pension records can make the process easier if HMRC asks for evidence.

Pension Relief Basics

UK pension tax relief is designed to encourage people to save for retirement. The way relief is provided depends largely on whether the pension uses relief at source or a net pay arrangement. Understanding this distinction is important when working out whether you need to claim additional relief.

Under relief at source, the pension provider normally claims 20% tax relief from HMRC and adds it to your pension.
If you pay Income Tax above the basic rate, you may be able to claim additional relief on qualifying contributions made through relief at source.
Under a net pay arrangement, pension contributions are normally deducted from pay before Income Tax is calculated.
The rules for additional relief can differ in Scotland because its Income Tax rates are different.

If you pay Income Tax above the basic rate in England, Wales or Northern Ireland and contribute through relief at source, you may be able to claim additional relief. You can generally claim through Self Assessment or HMRC's online service if you do not file a tax return. You can also estimate your tax liability with this UK Untaxed interest tax calculator.

HMRC’s Position

HMRC says the evidence requirement was changed to help ensure taxpayers claim the correct amount of relief. From 1 September 2025, some people making new claims may therefore be asked for evidence where it was not previously required. This can apply when relief is being given through an individual's tax code.

Evidence may include a pension provider statement showing contributions and the relevant tax year. HMRC may ask for evidence for each tax year covered by a claim. Keeping these records can help avoid delays if additional information is requested.

The requirement is particularly relevant to claims made outside a Self Assessment tax return. If you file Self Assessment, pension tax relief is generally claimed through the return itself. If you use HMRC's online service to adjust your tax code, you may need to provide supporting information.

Reactions and Concerns

Moving telephone claims to online and written routes may be less convenient for some taxpayers. This could particularly affect people who find digital services difficult to use. However, the change does not remove the tax relief available to eligible pension savers.

The main practical change is the way certain claims are submitted and checked. More taxpayers may now need to provide evidence of their pension contributions. This makes keeping pension statements and other records particularly important.

Taxpayers should also check how their pension scheme provides tax relief before making a claim. Claiming relief that has already been provided through payroll could result in an incorrect claim. Understanding the pension arrangement can help prevent this.

HMRC Pension Annual Allowance Charges Explained

Pension tax relief and the annual allowance are separate issues. For 2026/27, the standard pension annual allowance is £60,000. This is the normal limit against which pension savings are tested, although individual circumstances can change the amount available.

The tapered annual allowance can apply where threshold income is above £200,000 and adjusted income is above £260,000. For 2026/27, the minimum tapered annual allowance is £10,000. Unused annual allowance from the previous 3 tax years may also be available through carry-forward, subject to the rules.

The money purchase annual allowance is £10,000 for 2026/27 and can apply after someone has flexibly accessed certain pension benefits. If your pension savings exceed your available allowance, an annual allowance charge can arise. You may need to report the charge through Self Assessment, even if your pension provider pays some or all of it.

Wider Context

The move away from telephone Personal Pension Relief claims is part of HMRC's wider use of online services and evidence checks. Eligible taxpayers can claim through HMRC's online service or by post, while those who file Self Assessment generally claim through their tax return. The correct route depends on the taxpayer's circumstances.

This means not every pension contribution requires a separate claim. Relief may already have been provided through a net pay arrangement or added by a pension provider under relief at source. You should check how your pension works before claiming additional relief.

The annual allowance is a separate consideration. For 2026/27, the standard allowance is £60,000, but the amount available to an individual can be affected by tapering, flexible pension access and unused allowance from earlier tax years.

Practical Steps for Savers

Start by checking how your pension scheme provides tax relief. If you use a net pay arrangement, contributions are generally deducted before Income Tax, so you normally do not need to make a separate claim for that relief. If you use relief at source, check whether you are entitled to additional relief.

Keep records showing your pension provider, contributions and the relevant tax year. You should also record the tax relief already added to your pension. These details can be useful if HMRC asks you to provide evidence.

You should also check your pension savings against your available annual allowance. For 2026/27, the standard allowance is £60,000, but your personal allowance could be different. Carry-forward rules may increase the amount available if you have unused allowance from the previous 3 tax years.

Potential Impact on Processing Times

The move to online and written claims means taxpayers should allow time to provide supporting evidence if HMRC requests it. The online service asks for information about your pension provider, pension contributions and the tax years being claimed. Having these details ready can make the process more straightforward.

HMRC may ask for evidence where a claim meets its current evidence requirements. This can include pension statements or other documents confirming contributions. Keeping these records throughout the year can help if you need to support a claim.

The process also highlights why pension tax relief and annual allowance charges should be considered separately. You may be entitled to additional tax relief while also having an annual allowance charge if your pension savings exceed your available allowance. Checking both can give you a clearer picture of your overall pension tax position.

Final Summary

Since 1 September 2025, HMRC has no longer accepted telephone requests for Personal Pension Relief claims. Eligible taxpayers must claim online or by letter, while people completing Self Assessment generally claim through their tax return. HMRC has also lowered the evidence threshold for some new claims.

The change is particularly relevant to people with relief-at-source pensions who need to claim additional tax relief. People using net pay arrangements generally receive tax relief automatically through payroll. Keeping pension contribution records can help if HMRC asks for evidence.

It is also important to keep pension tax relief separate from HMRC pension annual allowance charges. For 2026/27, the standard annual allowance is £60,000, while the money purchase annual allowance is £10,000 and tapering can apply to some higher earners.

Get started with Pie Tax for free or download the app to see how it works for yourself.