Start SIPP?

jamesd

FYI I assumed that the intent of the gross wording was gross of income tax, after deducting business expenses, so not turnover or turnover less cost of sales but before expenses.

3stones

 Apologies if I worded it wrong first time round. I'm in trades so as a sole trader I declare a taxable net income after all allowable expenses and materials supplied are deducted from the " total money in column."

  If for example that before income tax net profit figure was estimated to be £35K is it that figure that I can base my pension contribution on? so I could contribute 28K into a pension and have the provider add another £7k? Or do I have to base my contribution on my annual "take home" income after all income tax has been deducted?

Dazed_and_C0nfused

You do not deduct tax, NIC (either Class 2 or 4) from the profit figure 

If £35,000 is the amount you will be taxed on i.e. the self employment profit on your SA302 calculation, and you don't have losses from another business then you can contribute £35,000.

Being £28,000 that you pay and £7,000 basic rate tax relief the pension company adds, courtesy of HMRC.