Salary sacrifice contributions

Pipkin1812

Hi. I’m looking to add to my SIPP before the end of the tax year. I’m trying to work out how much I’ve paid in to my pensions so far. I understand I can only pay in up to my earnings of £34k. I pay £100 a month to SIPP and £184 from my salary to my pension. I have also been paying into to my AVC (varying amounts from £650 up to £800 a month) via salary sacrifice. I pay £1 a month and employer pays the rest. Do I include all of these payments (plus the tax relief)?  Any thoughts welcome. 

Dazed_and_C0nfused

Pipkin1812 said:

Hi. I’m looking to add to my SIPP before the end of the tax year. I’m trying to work out how much I’ve paid in to my pensions so far. I understand I can only pay in up to my earnings of £34k. I pay £100 a month to SIPP and £184 from my salary to my pension. I have also been paying into to my AVC (varying amounts from £650 up to £800 a month) via salary sacrifice. I pay £1 a month and employer pays the rest. Do I include all of these payments (plus the tax relief)?  Any thoughts welcome. 

Salary sacrifice are employer contributions so of no relevance when it comes to the tax relief limit.  As they are employer contributions no tax relief is added because you haven't paid them.

The salary sacrifice contributions are however relevant for the separate annual allowance calculation.

Pipkin1812

I don’t think AA will be an issue so if I just add up what I pay to my SIPP and monthly pension contributions from my salary plus any tax relief the will give me how much I have paid?  If this is the case I think I should be well short of my relevant earnings limit. Am I correct? Thanks

QrizB

Pipkin1812 said:

If this is the case I think I should be well short of my relevant earnings limit. Am I correct?

You've not yet told us a few important facts, including:

- is your £34k salary before or after salsac? Eg. if you're salsac'ing £8k pa, is your salary £42k salsac'd down to £34k or £34k salsac'd down to £26k?

- How much are you hoping to add to your SIPP before the end of the tax year?

Pipkin1812

Hi. £34k is before Sal sac. I’m looking at around £2k but need to understand how much I’ve paid already this tax year. 

MeteredOut

Pipkin1812 said:

Hi. I’m looking to add to my SIPP before the end of the tax year. I’m trying to work out how much I’ve paid in to my pensions so far. I understand I can only pay in up to my earnings of £34k. I pay £100 a month to SIPP and £184 from my salary to my pension. I have also been paying into to my AVC (varying amounts from £650 up to £800 a month) via salary sacrifice. I pay £1 a month and employer pays the rest. Do I include all of these payments (plus the tax relief)?  Any thoughts welcome. 

Do you want to find out how much you've personally paid in (ie, ignoring employer contributions and salary sacrifice) or how much has been paid in in this tax year?

Does your pension provider have an online portal. Mine have areas where you can see total contributions between two dates. Would that suffice for the latter?

QrizB

Pipkin1812 said:

Hi. £34k is before Sal sac. I’m looking at around £2k but need to understand how much I’ve paid already this tax year. 

So it's your salary after salsac that's important.

But, from what you've said so far, I don't think a one-off £2k contribution is going to be a problem.