HMRC to mail up to one million low-earner pension refunds of about £70
HMRC will send letters to nearly a million low-income workers who missed pension tax relief, offering payments that average around £70.
HMRC has begun a programme to compensate low-paid workers who received no pension tax relief because their employers applied a net-pay arrangement while the employees earned under the personal-allowance level. Around one million people will be mailed a notice that they may be owed a refund, usually about £70, though the exact amount depends on individual circumstances. The first round of payments, covering the 2024/25 tax year, will be dispatched over the next few months and the scheme will run until early 2027, with the possibility of repeat payments for later years.
The authority will contact recipients by post or through their personal tax account and will not use email, text, or phone calls. Experts caution that the letters could be dismissed as scams, risking a large amount of unclaimed money. HMRC advises anyone receiving a letter to verify its authenticity on GOV.UK and to respond only via official channels.
