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Where Taxpayers and Advisers Meet

SIPP contributions to reclaim personal allowance

tonyp12e
Posts:2
Joined:Mon Jun 26, 2017 7:44 pm
SIPP contributions to reclaim personal allowance

Postby tonyp12e » Mon Jun 26, 2017 8:08 pm

Please can you advise the cash amount needed to paid into SIPP that is required to take adjusted net income back to £100k for £135k salary and therefore have personal allowance.

Is it £35k?

or £35k - 20% reclaimed by SIPP provider - Net contribution (£28k + £7k)

or £35k - 20% reclaimed by SIPP provider & higher rate claimed through HMRC self assessment (£16,400 + £7k + £11,600 )

Any clarification much appreciated

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: SIPP contributions to reclaim personal allowance

Postby AmanSood » Wed Jun 28, 2017 4:11 pm

Total gross pension contribution going into your pension should be £35k. So as an example, if you put in £28k into the pension, the provider will claim relief at 20% and the total contribution would be £35k. So you would be entitled to the full personal allowance.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

tonyp12e
Posts:2
Joined:Mon Jun 26, 2017 7:44 pm

Re: SIPP contributions to reclaim personal allowance

Postby tonyp12e » Wed Jun 28, 2017 6:19 pm

Thank you for the response, very useful

By the same measure does that mean that the amount declared as pension contributions in self assessment form is £35k ie the cash amount paid into SIPP plus the 20% tax relief claimed by SIPP provider?


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