SIPP Payments

fred246

My wife has one job. She received £3400 in pay last year and paid £200 into the LGPS. She pays no tax. How much can she pay into her SIPP? She loses out on pension relief at source for her LGPS as she pays no tax. Can she still pay £3600 gross into her SIPP? Is she reduced to £3400? I have just spoken to the pensions advisory service and her pension scheme and nobody seems to know.

DT2001

£3,600 in total if HL website is correct.

Paul_Herring

Presuming "last year" means sometime after April 6th 2018, so the 2018/19 tax year:

For that level of wage, your wife is restricted (in total) to the greater of her wages (£3,400) or £3,600; so the latter.

However, since a contribution of £200 has already been made to one scheme, this is reduced to £3,400 in any other schemes.

She may make a net payment of (£3,400*0.8) £2,720 which will be grossed up to £3,400 into her SIPP.