SIPP Annual Allowance: does all income contribute to this?

Voyager2002

Good evening,

I have a modest income from self-employment and would like to top up my SIPP before the end of the tax year. Is the amount I can add limited to my earnings; or can I add to that the income I received in dividends; and the amount received in payments from a modest occupational pension?

HMRC did not know and it wll be near the end of the year before I receive a call-back from a specialist!

hugheskevi

There is a list at this link of income that qualifies for tax relief.

This linked page may be helpful in answering your specific questions.

Dazed_and_C0nfused

Voyager2002 said:

Good evening,

I have a modest income from self-employment and would like to top up my SIPP before the end of the tax year. Is the amount I can add limited to my earnings; or can I add to that the income I received in dividends; and the amount received in payments from a modest occupational pension?

HMRC did not know and it wll be near the end of the year before I receive a call-back from a specialist!

A sad state of affairs.

You have to ignore the dividends and occupational pension.

Assuming your taxable profit is no more than £40,000 then the maximum you can contribute is 80% of your profit. 

And the basic rate tax relief the pension company adds, courtesy of HMRC, makes this up to a gross contribution equal to your profit.

dunstonh

I have a modest income from self-employment and would like to top up my SIPP before the end of the tax year. Is the amount I can add limited to my earnings; or can I add to that the income I received in dividends; and the amount received in payments from a modest occupational pension?

When you say self employed, do you mean sole trader or limited company?  - just asking as you mentioned dividends and that could refer to limited company and pension contribution rules are different for that compared to self employed.