The Prudential recently published a survey highlighting that many higher rate taxpayers do not claim higher rate relief on their pension contributions..
The main results of the survey concluded:
- 26% of employees earning more than £41,451 do not claim the higher rate income tax relief on their pension contributions.
- This equates to an estimated 185,000 higher rate tax payers failing to maximise their tax relief.
- The average loss to a higher rate tax payer as a result of not claiming this higher rate tax relief is £1,255 a year.
- The total “lost” tax relief amounts to £229 million.
- There is a further 15% (over 100,000) higher rate tax payers who are unsure if they are reclaiming the higher rate tax relief to which they are due.
- The majority of higher rate tax payers are making personal contributions of 10% of their salaries, the average of which is a little over £62,000, making the potential tax loss at over £100 a month.
If you would like our tax advice team to assist you with your tax return, including claiming pension tax relief for previous years contributions, please contact us >>