HMRC issues two-week alert over tax letters going out | Personal Finance | Finance
HMRC has explained its rules around tax relief on pensions in response to a customer. A major benefit of private pensions is that you can get tax relief on your contributions worth up to 100 per cent of your annual earnings.
Guidance on the HMRC website explains: «You’ll either get the tax relief automatically, or you’ll have to claim it yourself. It depends on the type of pension scheme you’re in, and the rate of income tax you pay.»
You can get the tax relief applied automatically if your pension is set up so that your employer takes pension contributions out of your pay before deducting income tax. You can also get the relief automatically if your pension provider claims tax relief from the Government at the basic 20 per cent rate and adds it to your pension pot, which is known as relief at source.
However, in some cases the individual employee needs to claim tax relief themself. This applies if you pay income tax at a rate above 20 per cent and your pension provider claims the first 20 per cent for you.
You will also need to claim if your pension scheme is not set up for automatic tax relief, or if someone else pays into your pension. A customer contacted HMRC as they had been waiting since November 28 for an update on their pension tax relief claim.
HMRC responded to ask if they had checked their personal tax account to see the status of their claim. The person went on to explain that they were a PAYE employee rather than being in self-assessment.
HMRC directed them to a page on the Government website where they could find out how best to get in touch. The tax department also told the customer they could expect a reply by March 14, 2026, based on this timescale tool on the Government website.
HMRC also instructed the taxpayer: «Please keep an eye on your account for any change in status/activity.» However, the person replied to say: «It’s now showing as complete, but no message that says ‘Tax calculation for the year’ like the previous or message to say rejected?»
The customer asked why it would be showing as complete but there were no further details about this. HMRC then pointed to a particular timeframe to note here: «If it’s complete, it can normally take up to two weeks to receive a notification letter.»
The person then asked if HMRC could check if it had been accepted. They said: «Completed assumes accepted, yet with no detail in app everything is up in the air.»
In response, HMRC said their social media team don’t have access to personal records. They directed the person to contact the tax body about the issue.
For the latest money saving tips, shopping and consumer news, go to the new Everything Money website.
