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    • AlanLebadger
    • By AlanLebadger 15th Mar 17, 8:53 PM
    • 1Posts
    • 0Thanks
    What net payment do I need to make into SIPP
    • #1
    • 15th Mar 17, 8:53 PM
    What net payment do I need to make into SIPP 15th Mar 17 at 8:53 PM
    I have completely confused myself with this and just need to sense check what to do.

    My total pay for this tax year 16/17 will be £113,000.

    What is the cash payment I need to make into my SIPP to fully avoid losing my personal allowance?

    I think the gross contribution needs to be £13k (at least I hope that's right anyway...). Does that mean I need to make a net payment of £10,400 in total into my SIPP which will get grossed up by my SIPP provider claiming BR relief and count as a gross contribution of £13k on my tax return?

    Thanks in advance....
Page 1
    • Dazed and confused
    • By Dazed and confused 15th Mar 17, 9:28 PM
    • 1,990 Posts
    • 897 Thanks
    Dazed and confused
    • #2
    • 15th Mar 17, 9:28 PM
    • #2
    • 15th Mar 17, 9:28 PM
    A payment of £10400 (the net of basic rate tax relief amount) would be grossed up to £13000.

    What about other income though such as employer benefits and savings interest? You need to consider the whole picture not just "pay".
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