Maximising pension contributions where earnings are under the annual allowance.

Hello Please can you let me know if I have understood this correctly. I earn well under the annual allowance (about £18K) and would like to pay in the maximum I can into my pensions this tax year. I understand that I can only receive tax relief on my gross annual earnings (I don't have any other "relevant earnings" just my earnings from employment). So I believe I can therefore pay in to my SIPP my full gross earnings of £18K (minus any personal contributions and employer contributions that will be made this tax year to my occupational DC pension) and then receive tax relief on all of these contributions? Is that correct? Many thanks

Hi

That is correct. Relief will be applied at the basic rate of 20%.

Thank you