Employer contributions to pension

gterr

I'm starting a new part-time job next week. My employer is offering to contribute 8% of my salary to a pension scheme of my choice. Since I have a SIPP with HL and this allows employer contributions I'll use this.


I also want to contribute to this SIPP the maximum amount I can next financial year. Will my employer contributions count towards this maximum, or be in addition to it? For example, if my annual salary is £8000 and employer contributions are £640, can I contribute £8000, or £7360?


Thanks for your time.

jem16

gterr wrote: »

I also want to contribute to this SIPP the maximum amount I can next financial year. Will my employer contributions count towards this maximum, or be in addition to it? For example, if my annual salary is £8000 and employer contributions are £640, can I contribute £8000, or £7360?


Thanks for your time.

The employer contributions don't count towards the tax relief limit of 100% of your earnings. They only count towards the annual allowance of £40k.

So for your £8k salary, you can contribute £8k gross.