Five tips for this year’s tax return...

With the deadline for self-assessment tax returns fast approaching on 31 January 2026, interactive investor’s personal finance expert, Craig Rickman, shares five tax tips for filling in this year’s form.

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1) Claim pension tax relief

“Higher-rate taxpayers may be able to claim a rebate worth thousands of pounds on their pension contributions, depending on the type of scheme. Although pension contributions attract upfront tax relief at your marginal rate, you won’t necessarily receive the whole benefit automatically. Personal pensions and some workplace schemes, known as relief at source, only add 20% tax relief automatically. Higher- and additional-rate taxpayers need to claim the remaining 20% or 25% through their tax return.

“Every year thousands of savers miss out on claiming pension tax relief because they assume the full amount is applied automatically or they forget to claim. This problem will likely exacerbate over time as the government’s decision to freeze income tax thresholds is jacking up the number of higher- and additional-rate taxpayers. A 40% taxpayer contributing £10,000 into a SIPP or relief-at-source pension could be owed a £2,500 rebate, while a 45% taxpayer could be owed £3,125.

“If you forget to include pension contributions on your tax return for any reason, you can write to HMRC and claim tax relief for the previous four tax years.”

2) Watch out for ‘hidden trap’ if you have a relief at source pension

“Although higher and additional rate taxpayers need to declare payments into a relief at source pension, the wording on the tax return is confusing and doesn’t make this clear. There’s a hidden trap meaning some savers could miss out on a large rebate due to misunderstanding the form.

“The form mentions personal pensions but tells taxpayers not to include workplace schemes, making it easy to miss filling in this section if you have a relief at source pension - they’re mentioned in the small print but not on the face of the tax return." (See notes to editors)

“It’s worth checking with your HR department if you have a relief at source pension as many people don’t realise and could be missing out on a valuable tax rebate every year.” 

3) Include all relevant reliefs and expenses

“If you’re self-employed then you’ll already know that there’s a complex web of rules surrounding what you can claim as expenses. Taking time to get familiar with these rules means you’ll be able to claim everything you’re entitled to. Including allowable expenses can reduce your taxable income, significantly in some cases, especially if you’re starting a new business and have bought valuable new equipment.”

4) Give yourself enough time

“It’s worth getting ahead and starting your tax return as soon as possible to swerve a last-minute rush. Not only may it reduce stress and anxiety, but it can often take time to round up your paperwork, and some payment methods take a few days to clear with HMRC.

“Getting ahead of things to avoid scrambling at the final hour also means you’re less likely overlook crucial potential benefits, like reclaiming your pension tax relief.”

5) Prepare for making tax digital

“If you’re self-employed or a landlord then you’ll already know that there’s a new tax regime from April 2026. Making Tax Digital means self-employed workers with income over £50,000 will need to submit quarterly updates to HMRC, rather than annual returns. You’ll also need to use accounting software from an approved list to submit information to HMRC.

“From April 2027, Making Tax Digital will be expanded to individuals with self-employed or property income above £30,000 and then £20,000 in the future.

“Once you’ve done this year's return, it’s important to get ready for Making Tax Digital as the first update will be due in August.”

*Note to editors on the tip 2

The opening section of the tax return is used to tailor the form. If taxpayers don’t select the pension section, it won’t be included in the subsequent form.

The wording on the face of the form excludes workplace pensions (with no mention of relief at source) so there is a high likelihood many taxpayers don’t tick the box and the pensions section is therefore hidden.

Here is the wording of face of the tax return.

“In the tax year 6 April 2024 to 5 April 2025: Did you make contributions towards a personal pension or retirement annuity? This does not include payments you make to your employer’s pension scheme, which are deducted from your pay:”

You then have to click a drop-down box to see the following further information:

“If your payments to your employer’s occupational pension scheme, or any associated Additional Voluntary Contributions, are deducted from your pay before it is taxed you will have already received your tax relief. Do not enter anything on this return.

If you make contributions towards a personal pension or retirement annuity, or you made payments to an employer’s registered pension scheme and no tax relief was given at the time of payment, select “Yes”, otherwise select “No”.”