SIPP - How much can i pay??

Maria2512

Hi,

After doing some research on how much i can contribute this financial year into a SIPP and have received varying amounts, Different AI's and search engines are giving me different answers!!

For context, my annual (contractual) gross salary for 26/27 will be £16129, Tax code 1088LX my pension contributions (LGPS) are 5.5% and i will have paid £5652 into my AVCs.

How much can i pay into a Sipp so i dont exceed my allowance?

Any help will be appreciated !

Dazed_and_C0nfused

What do you expect your P60 will show your taxable earnings as come 5 April 2027?

Do you have any employment benefits like a company car or medical insurance?

Is the £5652 paid by lump sum or through payroll?

Isthisforreal99

In addition to what D&C asked above, your previous posts said you were leaving LGPS in June 2026 - is this still the case and have you taken up new employment. If you did leave what was the figure on the P45?

Maria2512

@Dazed_and_C0nfused Thanks my taxable earnings on my P60 will show 11k ish

No employment benefits. 35652 through payroll

@Isthisforreal99 That was my partner. I am still employed

Linton

In principle…

Using your overall actual 2026/2027 figures, add your gross pension contribution to your gross AVC contributions and subtract the total from your gross salary. Now multiply the result by 0.8. That is the amount you can pay in to a SIPP. The missing 20% is paid directly to your SIPP by HMRC.

You wont know what the final 2026/2027 figures will be for certain, so guess them and treat the answer with caution. You could wait until just before the end of the tax year when you should have more accurate values.

Maria2512

https://forums.moneysavingexpert.com/discussion/comment/82177941#Comment_82177941

@Linton Thanks - How will HMRC know my salary is 16K if my Taxable pay is 11k ish on my P60?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/82177996#Comment_82177996

HMRC really aren't interested in your salary, it's your taxable earnings which matter to them.

I'm not sure what benefit there is to what @Linton has suggested to be honest when your payslips (and P60 in due course) will show your taxable earnings?

Maria2512

@Dazed_and_C0nfused I was under the impression that you could contribute your gross salary to a SIPP less pension and AVC’s each financial year In my case 16k.

That’s my confusion!

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/82178094#Comment_82178094

What is the answer for each option that has been suggested?

Linton

https://forums.moneysavingexpert.com/discussion/comment/82178094#Comment_82178094

I am confused on you gross salary and taxable earnings. Are you by any chance using salary sacrifice for your pension and AVC? In which case they can be ignored since they are classed as employer contributions and your actual "Gross Earnings" are the taxable figure.

Maria2512

@Dazed_and_C0nfused

On 16k (contractual salary) less Pension 800 and AVC 5652 = 9548 into a sipp

On 11k (Taxable pay) less Pension 800 and AVC 5652 = 4548 into a sipp……or am i missing something??

Figures are close but approximate