HM Revenue and Customs (HMRC) is set to contact approximately one million people, primarily women, who are owed pension tax relief. These individuals are low earners who missed out on payments due to the administration method of their pension schemes.
Letters will be sent out over the next few months, detailing how eligible individuals can receive their payments. The typical amount due is £70, though this can vary based on personal circumstances. These top-up payments will initially cover the 2024-25 tax year, with automated payments for subsequent years.
HMRC has advised that customers do not need to apply, as information will be sent automatically via letter or online personal tax accounts. The tax authority will not use text messages, emails, or phone calls for this purpose, and will never ask for money transfers, PIN codes, or passwords.
A HMRC spokesman stated, "We know some people may be cautious about unexpected contact, which is why we provide clear information about what to expect and how to verify the contact is genuine." Customers can verify letters on Gov.uk and should only respond through official HMRC channels.