A third of claims for personal pension relief by higher rate taxpayers are incorrect with numerous ineligible claims, mistaken calculations and some not even knowing how much they paid into their pension.

HMRC is tightening up checks to ensure personal pension relief claims are legitimate after a spot check found ‘many claims below the current evidence threshold were incorrect’. In future, all claimants will have to provide evidence of their claims.

It will also no longer be possible to make a claim over the phone.