Money Saving Expert founder Martin Lewis has delivered an urgent warning to 1.3 million British workers who could be missing out on thousands of pounds in pension tax relief. The financial guru revealed that those on emergency tax codes are particularly at risk of losing substantial sums they're rightfully owed.
The £5,000 Pension Oversight
During his latest ITV show, Lewis explained how higher and additional rate taxpayers are failing to claim back significant amounts of pension tax relief. "If you're a higher rate taxpayer, for every £100 that goes into your pension, you should get £25 extra," the consumer champion detailed.
He emphasised that while basic rate relief is typically added automatically, the additional relief for higher earners requires active claiming through self-assessment tax returns or directly from HMRC.
Who's Most at Risk?
The situation is particularly acute for the estimated 1.3 million people on emergency tax codes. Lewis warned that these individuals "are likely not getting the tax relief they're due" and could be missing out on up to £5,000.
Emergency tax codes often apply when people start new jobs without providing a P45, or when their income circumstances change significantly. The money expert stressed that those affected need to take immediate action to reclaim what they're owed.
How to Claim Your Money Back
Lewis outlined three clear pathways for reclaiming missed pension tax relief:
- Self-assessment route: Complete a tax return declaring the pension contributions
- Direct claim: Contact HMRC directly by phone or post with details of your contributions
- Adjust your tax code: Request HMRC to modify your tax code to account for future relief
The financial journalist noted that many people are unaware they need to claim this relief separately, leading to millions going unclaimed each year.
Don't Delay - Act Now
Lewis urged viewers not to procrastinate, emphasising that claims can typically be backdated for up to four tax years. "This is your money," he reminded audiences, "and you need to actively claim it back."
With pension contributions becoming increasingly important amid cost of living pressures, ensuring you receive full tax relief could make a significant difference to your retirement savings.
