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HMRC plans pension tax relief top-ups that may total about £70
The payments are aimed at low earners who missed out under certain pension administration schemes, with HMRC warning against texts or calls asking for money or passwords.
HM Revenue and Customs will send letters to about one million people, mostly women, who are owed pension tax relief top-up payments that are typically around £70, though the amount can vary by circumstances, according to BBC Business.
The top-ups are intended for low earners who received less pension tax relief than others because of how their employer administered their pension, such as differences between Net Pay Arrangement schemes and Relief at Source schemes. Eligibility is generally linked to earning close to, but not more than, £12,570 a year, and the first payment is tied to the 2024-25 tax year.
BBC Business reports that HMRC expects to contact eligible people automatically over the next few months and says recipients do not need to apply. HMRC will provide information by letter or through an online personal tax account, and it will not text, email, or call about the payments.
HMRC also warned, via BBC Business, that any unexpected calls or messages about the relief are likely scams. HMRC says it will not ask recipients to transfer money or share PIN codes or passwords, and it will only request bank details through the personal tax account, with a phone alternative for people who are digitally excluded.