Can you exceed SIPP salary cap with gross personal contributions?
A colleague working in Portugal (UK citizen, soon to be UK/Portuguese dual) works for a UK employer as a contractor and pays tax in Portugal; she has de-registered with HMRC. She wants to pay into a pension to receive an additional contribution from her employer (the same 10% it pays its UK staff) but the Portuguese system seems to have no viable private pension options. Can she pay into a SIPP as a gross personal contribution (not eligible for tax relief) despite it being over her £0 UK declared salary, and have the pension build up in the UK?
As I write this I realise that even if she could, she would be taxed twice on it: once when being paid the extra 10% before transferring it to a SIPP, and a second time when withdrawing from the SIPP (but would she be, if transferring it to Portugal?). Is there a solution? The employer uses Nest for its UK-based employees.
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