Millions of Britons are missing out on extra cash for their pensions because they do not know that they need to claim it from HMRC.
Figures released last year showed that £1.3billion of tax relief went unclaimed between 2016 to 2021.
Those paying higher rate tax are missing out on extra pension cash because they are not claiming the tax relief from HM Revenue and Customs (HMRC).
The current rules state that Britons who get a 20 per cent tax on their income get the relief on their pension automatically applied as they pay it into their plan.
But for those on a higher rate, either 40 per cent or 45 per cent, only the rate at which 20 per cent is applied is what they receive.
This means many people who don't claim are missing out on the extra 20 to 25 per cent on tax relief.
Britons can claim the tax relief from HMRC by either completing a Self Assessment return, or by writing or phoning HMRC officials
GETTYBritons can claim the tax relief from HMRC by either completing a Self Assessment return, or by writing or phoning HMRC officials.
However many people don't do this because they either don't know they're eligible for extra relief or they can't be bothered to go through the process.
Britons are warned that millions may be missing out on cash they need in their retirement.
Around 75 per cent of the UK's top earners eligible to claim relief through Self Assessment failed to do so, leaving £1.3billion of unclaimed pension tax relief to the tax man between 2016/17 and 2020/21, figures showed.
Rowan Harding, a financial planner for Path Financial, said: "Millions of people who are in the 40 per cent or 45 per cent tax bands may be missing out on vital tax relief to help them in their retirement.
"They just need to do a few simple things to make sure they are receiving all the tax relief they are entitled to. It's relatively pain-free and shouldn't take too long, but could be crucial when your pension pot comes around to being claimed.
"If you do choose to claim the extra tax from HMRC, you will need to add this to your pension pot yourself; it's not added automatically. By doing so, you could be amassing much-needed extra cash before you come to take your retirement.
"Be aware, though, that any additions to your pension will be subject to the annual allowance rules."
An annual allowance is the most someone can save in their pension pots in a tax year (April 6 to April 5) before they have to pay tax.
People will only pay tax if they go above the annual allowance. This is £60,000 this tax year.
Britons might be able to claim tax relief if they use their own money for things that they must buy for their job or they only use these things for their work.
A HMRC spokesperson said: "Taxpayers who pay the higher rate of income tax can claim additional tax relief on their personal pension payments without submitting a tax return, by contacting us by phone (0300 200 3300) or in writing (Pay as You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS)."
Additional-rate taxpayers, they added, should use their yearly Self Assessment form to claim the tax relief they're entitled to.
Britons can get tax relief on private pension contributions worth up to 100 per cent of their annual earnings.
They'll either get the tax relief automatically, or they’ll have to claim it themselves. It depends on the type of pension scheme they’re in, and the rate of Income Tax they pay.
