Pension tax relief
What a monthly contribution really costs you after tax relief — and what lands in the pot with an employer match.
Relief at source: your provider adds basic-rate relief automatically, so £80 becomes £100 in the pot.
Relief at source: your provider adds basic-rate relief automatically, so £80 becomes £100 in the pot. Higher and additional-rate taxpayers reclaim the extra through self-assessment or a tax code adjustment — it comes back to you, not into the pot, unless you choose to add it.
The employer contribution is the part most people under-value. It is not taxed on the way in and does not come out of your pay.
Formula
gross = net ÷ 0.8; reclaim = gross × (rate − 20%); cost = net − reclaim
Invested = gross + employer contribution. Chart is cumulative, before growth.
- 01Relief-at-source scheme. Net-pay and salary-sacrifice schemes work differently.
- 02Higher-rate relief assumes you reclaim it and that your income sits fully in that band.
- 03No growth is modelled — this isolates the relief effect.
- 04Annual allowance and tapering are ignored.
Holding everything else at your inputs
Each row changes one variable and shows the result. It illustrates which assumptions the answer is most sensitive to — it does not suggest which to choose.
| Variable | Changed to | Relief + match per year | vs your result |
|---|
Reminder: this tool is general education. It doesn't know your circumstances and isn't a personal recommendation or tax advice. For decisions, consult an FCA-authorised adviser — our toolkit shows how to find one.