Amount paid into pension

Merliner

Hi, hoping you can advise whether what I am doing is allowable for tax:

I have taxable income of £70,400 for 2024/25 and have made personal contributions of £20,967 to my SIPP, which have been grossed up to £26,209 by my provider reclaiming the tax.

My employer has made contributions of £51,923 to the same SIPP.

I have unused pension allowance of £33,500 from 2021/22 (a total of £6,500 was paid in that year).

My concern is that £26,209 + £51,293 is more than my taxable income of £70,400 but less than my annual allowance + carry forward (£60,000 + £33,500). Have I paid too much in this year?

dunstonh

I have taxable income of £70,400 for 2024/25 and have made personal contributions of £20,967 to my SIPP, which have been grossed up to £26,209 by my provider reclaiming the tax.

That actually means you have made £26,209 of pension contributions.  Pensions contributions are gross.

 Have I paid too much in this year?

No.   Your employer contribution goes towards the £60k contribution allowance but can use carry forward above and beyond your earnings.

Merliner

dunstonh said:

I have taxable income of £70,400 for 2024/25 and have made personal contributions of £20,967 to my SIPP, which have been grossed up to £26,209 by my provider reclaiming the tax.

That actually means you have made £26,209 of pension contributions.  Pensions contributions are gross.

 Have I paid too much in this year?

No.   Your employer contribution goes towards the £60k contribution allowance but can use carry forward above and beyond your earnings.

Thanks, much appreciated for the quick response.