Every UK taxpayer under the age of 75 (employed or not), is entitled to tax relief on their pensions from the government. Depending on how much you contribute and your tax bracket determines how much relief you’ll receive.
We’ll automatically enrol you to receive tax relief on your pension, you won’t need to do anything. When you top-up your SIPP portfolio, the pending HMRC rebate amount will appear in your transactions.
You will receive your tax relief approximately within 6-11 weeks, however in some cases it may take longer.
Tax relief for all (net) contributions between the 6th through to the 5th of each calendar month is sent to HMRC at the end of the month and should be paid out on/after the 22nd of the subsequent month.
For example, if you made a payment on the 15th of the month, the tax relief will be processed with all other payments between the 6th – 5th of the following month. There’s a reconciliation process and then sent to HMRC by the end of the month. HMRC will pay out the rebate at the end of/after the following month. Once received by our administrators it will take a day or two to be applied to your SIPP portfolio.
If you’re on a higher tax band, you will receive the standard 20% rebate to your SIPP portfolio and the remainder (20-25%) will need to be claimed through your annual tax return form.
It’s worth noting that there may be a delay in receiving your tax relief if the details on your InvestEngine account (full name, date of birth and national insurance number) do not match what HMRC hold for you. We will get in touch if this is the case.