I just opened a self-invested personal pension (Sipp), which required an initial investment of £500.
I was surprised when tax relief was added by the pension provider, as I’m a non-taxpayer.
Will I have to pay this back to HMRC?
Kevin from Liverpool
‘Even non-taxpayers get rewarded for saving for retirement’
Joanne Padilla, Which? money expert, says…
Savers can get tax relief on pension contributions worth up to the annual allowance of £60,000 a year or 100% of your earnings – whichever is lower.
Non-taxpayers can also benefit from tax relief at the basic rate (20%) on pension contributions, although the limits are lower: either 80% of your earnings in a year or £2,880 if you have no earnings.
Non-taxpayers can also benefit from tax relief at the basic rate (20%)
This means you don’t have to pay back the tax relief you’ve already received.
In fact, you were able to benefit from tax relief on further contributions of up to £2,380 before the end of the tax year on 5 April 2026.
- Find out more: Calculate pension tax relief
Which? Money 1-to-1 guidance
Our team of money experts can answer your questions big and small, on topics from pensions to tax and savings to scams.
They’re impartial so they don’t give regulated financial advice or recommend particular products or providers – they’re here to support you and to help you make more confident financial decisions in these areas and more:
Which? Money members and their immediate family get unlimited access to 1-to-1 guidance sessions.
If you’re a Which? Money member, you can book an appointment online. If you’re not, you can find out more about membership.
