Query re pension input amount, carryover and DC payments

Purplelady65

I work in the NHS and in this last financial year 24/25 my salary increased due to taking on an acting up role for 9 months. Due to this increase I believe that I have exceeded my pension input amount. I am a member of the 1995 NHS pension scheme with exactly 29 years service in the scheme. I am also a member of the 2015 pension scheme.

I have also paid £7,343 into a SIPP and had 20% tax relief added to the SIPP in 24/25. By my calculations the increase in value in my NHS pensions in this financial year is £96,072 plus the SIPP making a total of £104.415.  I have tried on numerous occasions to obtain a pension input statement from NHS pensions so I can look at the PIA for previous years but they have been unable to provide me with one. As my salary has only increased by cost of living awards over the past 3 years and CPI is added to the opening balance I have calculated that I should be able to carry over the following unused allowance from the previous years (assuming my calculations are correct):

21/22 - £31K (£9k used) 

22/23 - £20k (£20k used)

23/24 - £34k (£26k used)

Total £85k

I just have a question about my SIPP contributions. Will they be eligible for higher rate tax relief or not given the increase in the value of my DB pension? I’m not sure how it works with a combination of DB value and DC contributions. My salary for 24/25 is £83,868. Ideally I'd like to pay enough into my SIPP to benefit from the higher rate tax relief. Thank you in advance for any responses. 

Dazed_and_C0nfused

Purplelady65 said:

I work in the NHS and in this last financial year 24/25 my salary increased due to taking on an acting up role for 9 months. Due to this increase I believe that I have exceeded my pension input amount. I am a member of the 1995 NHS pension scheme with exactly 29 years service in the scheme. I am also a member of the 2015 pension scheme.

I have also paid £7,343 into a SIPP and had 20% tax relief added to the SIPP in 24/25. By my calculations the increase in value in my NHS pensions in this financial year is £96,072 plus the SIPP making a total of £104.415.  I have tried on numerous occasions to obtain a pension input statement from NHS pensions so I can look at the PIA for previous years but they have been unable to provide me with one. As my salary has only increased by cost of living awards over the past 3 years and CPI is added to the opening balance I have calculated that I should be able to carry over the following unused allowance from the previous years (assuming my calculations are correct):

21/22 - £31K (£9k used) 

22/23 - £20k (£20k used)

23/24 - £34k (£26k used)

Total £85k

I just have a question about my SIPP contributions. Will they be eligible for higher rate tax relief or not given the increase in the value of my DB pension? I’m not sure how it works with a combination of DB value and DC contributions. My salary for 24/25 is £83,868. Ideally I'd like to pay enough into my SIPP to benefit from the higher rate tax relief. Thank you in advance for any responses. 

Some of your figures don't make sense.

The difference between £96,072 and £104,415 is £8,343.

Was the £7,343 the (net) amount you paid or the gross contribution with pension tax relief added?  Either way it doesn't tally with the £96,072 and £104,415 figures.

Also, your salary is unlikely to be relevant when it comes to tax relief.  It's your taxable earnings which count and they will be much less than your salary as the NHS operate a net pay scheme where pension contributions are deducted to leave a lower taxable earnings amount.

ewaste

Two entirely separate issues, you will be entitled to Higher Rate relief so long as you've earned and paid sufficient HRT for that financial year.

Annual Allowance is then a separate issue and as you've surmised depends upon the PIA figures.