Tiny income - how much to pay into SIPP?

CoyKarp

I am a sole trader. I have been off work for nearly 6 months. I intend to return; I'm just not sure when.

My turnover for this tax year is very low (£6500 approx) as I was already slowing down my hours before I stopped. When I subtract expenses I am left with approximately £400.

My question is this: do I only pay the £320 (400 x 80%) into my SIPP? Or do I pay in the minimum £2880 that people who are not working at all can pay in, and add the £320 on top?

I cannot find the answer anywhere. Thank you for your help.

molerat

Everyone is allowed £2880 (£3600) irrespective of their income, you cannot add your income on top of that - you are allowed the higher of.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/81905792#Comment_81905792

....but tax relief on personal contributions stops when you reach age 75.

CoyKarp

https://forums.moneysavingexpert.com/discussion/comment/81905792#Comment_81905792

Thanks - just to clarify: you mean I could add either the 2880 or my income, whichever is the higher?

LHW99

https://forums.moneysavingexpert.com/discussion/comment/81905822#Comment_81905822

£2880, or your profits whichever is higher I think (as you are self employed)

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81905853#Comment_81905853

For clarity - you can add £3600 gross or your profits gross.

Gross in this case means with the basic rate tax relief included.