How much can I pay into my pension?

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dboswell
dboswell Posts: 309 Forumite
in Pensions, annuities & retirement planning
My earnings for 2018/19 will be around £11,700 via PAYE.

I have paid £634 in tax so far which I assume is reclaimable.

I have paid around £750 in NI as my earnings have been lumpy.

What is the maximum I can pay into my pension and get the 20% top-up?

I am thinking of a SIPP with HL. No other pensions at present.

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  • dunstonh
    dunstonh Posts: 116,383 Forumite
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    What is the maximum I can pay into my pension and get the 20% top-up?

    Pensions dont get a top up. Perhaps you are mixing them up with LISAs that do.

    Pensions get tax relief. So, in your case, you can pay £11,700 gross and get 20% tax relief on that.
    I am thinking of a SIPP with HL. No other pensions at present.

    Why no workplace pension?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    You actually pay £9,360 and the pension company add the tax relief so your gross contribution is £11,700.

    You don't have to actually pay £2,340 in tax to get this tax relief added to your pension :)
  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
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    dboswell wrote: »
    My earnings for 2018/19 will be around £11,700 via PAYE.

    I have paid £634 in tax so far which I assume is reclaimable..

    Assuming that £11,700 is the before-tax figure, you can pay 80% of that (£9360) into a pension and get it topped back up (with £2,340) to £11,700.

    i.e. you can end up reclaiming 20% on contributions that weren't taxed in the first place (akin to those who don't earn anything can contribute £2,880 can get it topped up to £3,600)

    You can't claim back any NI.
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