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How much to pay in for £60K max contribution this year

secondincometrader
Posts: 40 Forumite

I want to make the max contribution for this year of £60K into my SIPP. Does that mean I pay in £48K and my SIPP provider adds the £20% tax contribution of £12K (20% of £60K).
I can then claim back any addittional tax relief later.
Have I understood this correctly? Thanks in advance
I can then claim back any addittional tax relief later.
Have I understood this correctly? Thanks in advance
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Comments
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secondincometrader said:I want to make the max contribution for this year of £60K into my SIPP. Does that mean I pay in £48K and my SIPP provider adds the £20% tax contribution of £12K (20% of £60K). Have I understood this correctly? Thanks in advance
NB. Not as in you can afford to but that the rules allow such a payment1 -
Thanks of the reply, would you know if there is a calculator that will tell me how much my total tax relief will be assuming a gross salary of x?0
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It's the £12k the pension company adds.
Amy additional relief benefits you, not he pension fund and is entirely dependent on your other taxable income in the year.
Gross salary is irrelevant for tax purposes, it's taxable pay (P60 pay figure) which is the starting point.
You could get more than £12k in additional relief. Or less than £2k.1 -
secondincometrader said:I want to make the max contribution for this year of £60K into my SIPP. Does that mean I pay in £48K and my SIPP provider adds the £20% tax contribution of £12K (20% of £60K).
I can then claim back any addittional tax relief later.
Have I understood this correctly? Thanks in advance
However there is also a separate limit of your relevant UK earnings for the current tax year.
The lower of those two will be your maximum contribution.Fashion on the Ration
2024 - 43/66 coupons used, carry forward 23
2025 - 41.5/891 -
For anyone else interested I found a good tax relief calculator on the Hargreaves Lansdown site
https://www.hl.co.uk/pensions/tax-relief/calculator2 -
Sarahspangles said:secondincometrader said:I want to make the max contribution for this year of £60K into my SIPP. Does that mean I pay in £48K and my SIPP provider adds the £20% tax contribution of £12K (20% of £60K).
I can then claim back any addittional tax relief later.
Have I understood this correctly? Thanks in advance
However there is also a separate limit of your relevant UK earnings for the current tax year.
The lower of those two will be your maximum contribution.1 -
Dazed_and_C0nfused said:Sarahspangles said:secondincometrader said:I want to make the max contribution for this year of £60K into my SIPP. Does that mean I pay in £48K and my SIPP provider adds the £20% tax contribution of £12K (20% of £60K).
I can then claim back any addittional tax relief later.
Have I understood this correctly? Thanks in advance
However there is also a separate limit of your relevant UK earnings for the current tax year.
The lower of those two will be your maximum contribution.0 -
secondincometrader said:Dazed_and_C0nfused said:Sarahspangles said:secondincometrader said:I want to make the max contribution for this year of £60K into my SIPP. Does that mean I pay in £48K and my SIPP provider adds the £20% tax contribution of £12K (20% of £60K).
I can then claim back any addittional tax relief later.
Have I understood this correctly? Thanks in advance
However there is also a separate limit of your relevant UK earnings for the current tax year.
The lower of those two will be your maximum contribution.0 -
Dazed_and_C0nfused said:secondincometrader said:Dazed_and_C0nfused said:Sarahspangles said:secondincometrader said:I want to make the max contribution for this year of £60K into my SIPP. Does that mean I pay in £48K and my SIPP provider adds the £20% tax contribution of £12K (20% of £60K).
I can then claim back any addittional tax relief later.
Have I understood this correctly? Thanks in advance
However there is also a separate limit of your relevant UK earnings for the current tax year.
The lower of those two will be your maximum contribution.0 -
Don't forget any employer contributions (if you have any, you might be self employed) count against the AA as well, so that may reduce the amount you can personally contribute.0
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