How much is too much

Aob

If I earn 31k and put the maximum amount into my pension through salery sacrifice. Leaving a balance of roughly 17k net how much of this can I put in to my pension. 
And can I put additional earnings from rental income 6k in as well and will I receive 20% top up on this

Dazed_and_C0nfused

You can use the rental income for what you want but the maximum you can contribute to a pension is based on your pensionable earnings and rental income isn't counted for that purpose.

When you say £17k net do you mean that is your taxable income which will be shown on your P60 or your net take home pay for the year?

Don't forget you aren't contributing anything at the moment.  Salary sacrifice means your employer is contributing, that's why there is no pension tax relief available on salary sacrifice pension contribution - they are employer not employee contributions.

Personal contributions to a SIPP benefit from a 25% "top up" not 20%.  For example say you want to contribute £15,000.  You pay over £12,000 and the pension company adds £3,000 making it £15,000 in your pension fund.

Aob

Net take home so can I put this in my pension as well

Dazed_and_C0nfused

You may be able to pay in more (if you can afford to) as the amount you can contribute is based on your pensionable earnings not your take home pay.

What do you expect your P60 to show your taxable income as for 2020:21?

Aob

P60 for 2021 should show around 16k

Linton

Aob said:

P60 for 2021 should show around 16k

Assuming your only other pension contribution is £14K through salary sacrifice you can contribute the whole £16K of earnings into a private pension.  You do this by actually paying in 80% of £16K=£12800 and HMRC will refund the missing £3200 directly into the pension as tax relief for tax that you mostly did not pay.

There is also a £40K total limit, but provided your employer contribution is less than £10K it wont apply.