Higher earners in the UK are missing out on hundreds of millions of pounds in unclaimed pension tax relief each year, according to Penfold.

The workplace pension provider said people earning over £50,270 were leaving substantial amounts of money on the table annually by not claiming the full pension tax relief available to them.

It highlighted that the majority of higher earners were failing to claim the extra 20-25 per cent pension tax relief they are entitled to because it does not happen automatically.

As a result, individuals could be losing out on hundreds, or potentially thousands, of pounds every year.

While basic rate taxpayers automatically receive 20 per cent tax relief on pension contributions, higher and additional rate taxpayers need to claim the remainder themselves.

However, Penfold warned that many were simply not claiming this additional relief and missing out on substantial sums.

“As of 2025, HMRC has introduced a streamlined online service, replacing the older, slower manual claims process,” said Penfold CEO and co-founder, Chris Eastwood.

“Taxpayers can now claim higher-rate or additional-rate relief via the HMRC online service or through their self-assessment tax return. Eligible individuals can even backdate claims for up to four previous tax years.

“Most workplace pensions automatically apply tax relief at your highest rate, depending on contribution arrangements such as net pay, relief at source, or salary sacrifice.

“Where this does not happen, employees can still claim extra relief themselves.”

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