File now or risk losing out

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HERE'S a lot to think about as the end of the tax year looms, and many risk losing out by failing to claim tax relief on their pension contributions. This matters more than ever as millions are being dragged into higher-rate tax bands by the freeze on income tax thresholds, with experts warning that huge sums of relief could go unclaimed.

The deadline for filing a tax return for the 2024/25 tax year is January 31, yet around six million people still haven't submitted theirs.

There's plenty to worry about, but this is one issue anyone paying into a pension really shouldn't ignore.

Pension providers automatically add basic-rate tax relief at 20% to contributions, but higher and additional rate taxpayers must actively claim the extra relief, usually through self-assessment, or risk missing out altogether.