SIPP contributions and whether a self assessment tax return is required

Dazed_and_C0nfused

SarahB16 said:

Thank you @Albermarle and @SimonSeys this is extremely helpful.

I would be very grateful if you could kindly confirm my understanding of what I need to do is correct.

Year ending 5th April 2026
In January-March 2026 I intend to open a SIPP and make a net contribution of £12,000. Due to my LGPS AVC contributions in the year to 5th April 2026 my taxable pay is reduced below £50,270 (this is clearly shown on my payslips) so there is nothing I need to do (i.e. no form to fill in) and I simply wait for the grossing up/20% tax relief to be added in due course to my SIPP and noting this could take between 6 to 11 weeks.  

Year ending 5th April 2027
In the following tax year (year ending 5th April 2027) I intend to keep my AVC contributions at the current level which reduces my taxable pay to below £50,270 so again there is nothing I need to do re completing the online form (kindly shared in the link above). 

Year ending 5th April 2028 
The following year, 6th April 2027 to 5th April 2028, I intend to reduce my AVC contributions to 50% of what I am currently contributing. This means my taxable pay is above £50,270 for the first time due to the reduced level of AVC contributions. I will continue with my SIPP contributions (likely in a lump sum amount perhaps twice in this tax year). This will be my first year when I need to fill in the online form (referred to above). I have a question below regarding when I need to fill in this form please. 

Question: A question I have regarding the online form is do I complete the online form after the tax year end? I presume I must as it is only then that I can inform HMRC of the net SIPP contributions that I made in the tax year? Therefore after 5th April 2028 I need to complete the online form for the year ending 5th April 2028 in order that my tax code can be adjusted so I receive the higher rate tax relief (received via my net salary) re the SIPP contributions I made in the year ending 5th April 2028? 

Very grateful, as always, for the opinions kindly shared.   

It's your choice when to submit the form.

You cannot get tax relief via your tax code for contributions paid in a different tax year though, so what you have suggested is never going to happen.

You might find life simplest to submit the form as you have suggested.  And you will then get a calculation, in Summer 2028, for the year to 5 April 2028 and can get a lump sum paid into your bank account in respect of any overpaid tax.

Or submit it earlier (at least 2-3 months before the end of the tax year) and get a provisional tax code adjustment.  Which will still need reviewing once the tax year has ended.

SarahB16

Dazed_and_C0nfused said:

SarahB16 said:

Thank you @Albermarle and @SimonSeys this is extremely helpful.

I would be very grateful if you could kindly confirm my understanding of what I need to do is correct.

Year ending 5th April 2026
In January-March 2026 I intend to open a SIPP and make a net contribution of £12,000. Due to my LGPS AVC contributions in the year to 5th April 2026 my taxable pay is reduced below £50,270 (this is clearly shown on my payslips) so there is nothing I need to do (i.e. no form to fill in) and I simply wait for the grossing up/20% tax relief to be added in due course to my SIPP and noting this could take between 6 to 11 weeks.  

Year ending 5th April 2027
In the following tax year (year ending 5th April 2027) I intend to keep my AVC contributions at the current level which reduces my taxable pay to below £50,270 so again there is nothing I need to do re completing the online form (kindly shared in the link above). 

Year ending 5th April 2028 
The following year, 6th April 2027 to 5th April 2028, I intend to reduce my AVC contributions to 50% of what I am currently contributing. This means my taxable pay is above £50,270 for the first time due to the reduced level of AVC contributions. I will continue with my SIPP contributions (likely in a lump sum amount perhaps twice in this tax year). This will be my first year when I need to fill in the online form (referred to above). I have a question below regarding when I need to fill in this form please. 

Question: A question I have regarding the online form is do I complete the online form after the tax year end? I presume I must as it is only then that I can inform HMRC of the net SIPP contributions that I made in the tax year? Therefore after 5th April 2028 I need to complete the online form for the year ending 5th April 2028 in order that my tax code can be adjusted so I receive the higher rate tax relief (received via my net salary) re the SIPP contributions I made in the year ending 5th April 2028? 

Very grateful, as always, for the opinions kindly shared.   

It's your choice when to submit the form.

You cannot get tax relief via your tax code for contributions paid in a different tax year though, so what you have suggested is never going to happen.

You might find life simplest to submit the form as you have suggested.  And you will then get a calculation, in Summer 2028, for the year to 5 April 2028 and can get a lump sum paid into your bank account in respect of any overpaid tax.

Or submit it earlier (at least 2-3 months before the end of the tax year) and get a provisional tax code adjustment.  Which will still need reviewing once the tax year has ended.

Submitting at least 2-3 months before the end of the tax year definitely sounds like the better option. I didn't realise that I could do this (i.e. didn't know if I had to wait until after the end of the tax year). 

Thank you  

Albermarle

SarahB16 said:

Dazed_and_C0nfused said:

SarahB16 said:

Thank you @Albermarle and @SimonSeys this is extremely helpful.

I would be very grateful if you could kindly confirm my understanding of what I need to do is correct.

Year ending 5th April 2026
In January-March 2026 I intend to open a SIPP and make a net contribution of £12,000. Due to my LGPS AVC contributions in the year to 5th April 2026 my taxable pay is reduced below £50,270 (this is clearly shown on my payslips) so there is nothing I need to do (i.e. no form to fill in) and I simply wait for the grossing up/20% tax relief to be added in due course to my SIPP and noting this could take between 6 to 11 weeks.  

Year ending 5th April 2027
In the following tax year (year ending 5th April 2027) I intend to keep my AVC contributions at the current level which reduces my taxable pay to below £50,270 so again there is nothing I need to do re completing the online form (kindly shared in the link above). 

Year ending 5th April 2028 
The following year, 6th April 2027 to 5th April 2028, I intend to reduce my AVC contributions to 50% of what I am currently contributing. This means my taxable pay is above £50,270 for the first time due to the reduced level of AVC contributions. I will continue with my SIPP contributions (likely in a lump sum amount perhaps twice in this tax year). This will be my first year when I need to fill in the online form (referred to above). I have a question below regarding when I need to fill in this form please. 

Question: A question I have regarding the online form is do I complete the online form after the tax year end? I presume I must as it is only then that I can inform HMRC of the net SIPP contributions that I made in the tax year? Therefore after 5th April 2028 I need to complete the online form for the year ending 5th April 2028 in order that my tax code can be adjusted so I receive the higher rate tax relief (received via my net salary) re the SIPP contributions I made in the year ending 5th April 2028? 

Very grateful, as always, for the opinions kindly shared.   

It's your choice when to submit the form.

You cannot get tax relief via your tax code for contributions paid in a different tax year though, so what you have suggested is never going to happen.

You might find life simplest to submit the form as you have suggested.  And you will then get a calculation, in Summer 2028, for the year to 5 April 2028 and can get a lump sum paid into your bank account in respect of any overpaid tax.

Or submit it earlier (at least 2-3 months before the end of the tax year) and get a provisional tax code adjustment.  Which will still need reviewing once the tax year has ended.

Submitting at least 2-3 months before the end of the tax year definitely sounds like the better option. I didn't realise that I could do this (i.e. didn't know if I had to wait until after the end of the tax year). 

Thank you  

Once you have submitted it ( either before or after April 5th 2028), then HMRC will assume a similar level of contributions in the tax year 28/29. They will adjust your tax code for 28/29 on that basis ( increase it) , so that at the end of the tax year, you should have paid approx the right amount of tax.
If your SIPP contributions are likely to be significantly less or more in 28/29 compared to 27/28, then best to inform HMRC ( you can do this on line) once 28/29 has started, of what the likely contribution level will be.

Remember if you do not do self assessment, your tax situation will be reviewed automatically by simple assessment some months after the tax year ends, and any under or overpaid tax will be calculated then.

Dazed_and_C0nfused

Albermarle said:

SarahB16 said:

Dazed_and_C0nfused said:

SarahB16 said:

Thank you @Albermarle and @SimonSeys this is extremely helpful.

I would be very grateful if you could kindly confirm my understanding of what I need to do is correct.

Year ending 5th April 2026
In January-March 2026 I intend to open a SIPP and make a net contribution of £12,000. Due to my LGPS AVC contributions in the year to 5th April 2026 my taxable pay is reduced below £50,270 (this is clearly shown on my payslips) so there is nothing I need to do (i.e. no form to fill in) and I simply wait for the grossing up/20% tax relief to be added in due course to my SIPP and noting this could take between 6 to 11 weeks.  

Year ending 5th April 2027
In the following tax year (year ending 5th April 2027) I intend to keep my AVC contributions at the current level which reduces my taxable pay to below £50,270 so again there is nothing I need to do re completing the online form (kindly shared in the link above). 

Year ending 5th April 2028 
The following year, 6th April 2027 to 5th April 2028, I intend to reduce my AVC contributions to 50% of what I am currently contributing. This means my taxable pay is above £50,270 for the first time due to the reduced level of AVC contributions. I will continue with my SIPP contributions (likely in a lump sum amount perhaps twice in this tax year). This will be my first year when I need to fill in the online form (referred to above). I have a question below regarding when I need to fill in this form please. 

Question: A question I have regarding the online form is do I complete the online form after the tax year end? I presume I must as it is only then that I can inform HMRC of the net SIPP contributions that I made in the tax year? Therefore after 5th April 2028 I need to complete the online form for the year ending 5th April 2028 in order that my tax code can be adjusted so I receive the higher rate tax relief (received via my net salary) re the SIPP contributions I made in the year ending 5th April 2028? 

Very grateful, as always, for the opinions kindly shared.   

It's your choice when to submit the form.

You cannot get tax relief via your tax code for contributions paid in a different tax year though, so what you have suggested is never going to happen.

You might find life simplest to submit the form as you have suggested.  And you will then get a calculation, in Summer 2028, for the year to 5 April 2028 and can get a lump sum paid into your bank account in respect of any overpaid tax.

Or submit it earlier (at least 2-3 months before the end of the tax year) and get a provisional tax code adjustment.  Which will still need reviewing once the tax year has ended.

Submitting at least 2-3 months before the end of the tax year definitely sounds like the better option. I didn't realise that I could do this (i.e. didn't know if I had to wait until after the end of the tax year). 

Thank you  

Once you have submitted it ( either before or after April 5th 2028), then HMRC will assume a similar level of contributions in the tax year 28/29. They will adjust your tax code for 28/29 on that basis ( increase it) , so that at the end of the tax year, you should have paid approx the right amount of tax.
If your SIPP contributions are likely to be significantly less or more in 28/29 compared to 27/28, then best to inform HMRC ( you can do this on line) once 28/29 has started, of what the likely contribution level will be.

Remember if you do not do self assessment, your tax situation will be reviewed automatically by simple assessment some months after the tax year ends, and any under or overpaid tax will be calculated then.

@Albermarle Simple Assessment is only for underpaid tax.  And only then for situations where the tax owed cannot (under HMRC's rules) be collected via a tax code.

So entirely possible for the op but maybe less likely than a P800 calculation. 

Albermarle

Dazed_and_C0nfused said:

Albermarle said:

SarahB16 said:

Dazed_and_C0nfused said:

SarahB16 said:

Thank you @Albermarle and @SimonSeys this is extremely helpful.

I would be very grateful if you could kindly confirm my understanding of what I need to do is correct.

Year ending 5th April 2026
In January-March 2026 I intend to open a SIPP and make a net contribution of £12,000. Due to my LGPS AVC contributions in the year to 5th April 2026 my taxable pay is reduced below £50,270 (this is clearly shown on my payslips) so there is nothing I need to do (i.e. no form to fill in) and I simply wait for the grossing up/20% tax relief to be added in due course to my SIPP and noting this could take between 6 to 11 weeks.  

Year ending 5th April 2027
In the following tax year (year ending 5th April 2027) I intend to keep my AVC contributions at the current level which reduces my taxable pay to below £50,270 so again there is nothing I need to do re completing the online form (kindly shared in the link above). 

Year ending 5th April 2028 
The following year, 6th April 2027 to 5th April 2028, I intend to reduce my AVC contributions to 50% of what I am currently contributing. This means my taxable pay is above £50,270 for the first time due to the reduced level of AVC contributions. I will continue with my SIPP contributions (likely in a lump sum amount perhaps twice in this tax year). This will be my first year when I need to fill in the online form (referred to above). I have a question below regarding when I need to fill in this form please. 

Question: A question I have regarding the online form is do I complete the online form after the tax year end? I presume I must as it is only then that I can inform HMRC of the net SIPP contributions that I made in the tax year? Therefore after 5th April 2028 I need to complete the online form for the year ending 5th April 2028 in order that my tax code can be adjusted so I receive the higher rate tax relief (received via my net salary) re the SIPP contributions I made in the year ending 5th April 2028? 

Very grateful, as always, for the opinions kindly shared.   

It's your choice when to submit the form.

You cannot get tax relief via your tax code for contributions paid in a different tax year though, so what you have suggested is never going to happen.

You might find life simplest to submit the form as you have suggested.  And you will then get a calculation, in Summer 2028, for the year to 5 April 2028 and can get a lump sum paid into your bank account in respect of any overpaid tax.

Or submit it earlier (at least 2-3 months before the end of the tax year) and get a provisional tax code adjustment.  Which will still need reviewing once the tax year has ended.

Submitting at least 2-3 months before the end of the tax year definitely sounds like the better option. I didn't realise that I could do this (i.e. didn't know if I had to wait until after the end of the tax year). 

Thank you  

Once you have submitted it ( either before or after April 5th 2028), then HMRC will assume a similar level of contributions in the tax year 28/29. They will adjust your tax code for 28/29 on that basis ( increase it) , so that at the end of the tax year, you should have paid approx the right amount of tax.
If your SIPP contributions are likely to be significantly less or more in 28/29 compared to 27/28, then best to inform HMRC ( you can do this on line) once 28/29 has started, of what the likely contribution level will be.

Remember if you do not do self assessment, your tax situation will be reviewed automatically by simple assessment some months after the tax year ends, and any under or overpaid tax will be calculated then.

@Albermarle Simple Assessment is only for underpaid tax.  And only then for situations where the tax owed cannot (under HMRC's rules) be collected via a tax code.

So entirely possible for the op but maybe less likely than a P800 calculation. 

OK I was thinking that Simple Assessment and getting a P800 calculation, where one and the same thing, but obviously not.