Hi, I'm confused about what makes up the amount I can pay into my pensions over a tax year and receive tax relief.
I earn a gross salary of £34,000 in the tax year, my understanding is I could pay maximum pension contributions of £27,200 and receive £6,800 tax relief, bringing the total contributions to my pensions to £34,000 in the tax year.
I pay into an LGPS which is a DB pension scheme, my contributions to this pension are £1,768, and receive tax relief bringing the total contribution across the tax year to £2,210.
I also have AVC contributions of £1,700 and receive tax relief of £425 on these bringing the total contributions to £2,125
I have some savings that I would like to pay into a SIPP, so do my total contributions (including tax relief) of £2,210 + £2,125 equaling £4,335 leave me with the ability to make another contribution into a SIPP of £23,732 and receive tax relief of £5,933 to bring the contribution up to £29,665 and thus making my total year's contribution £34,000 (same as gross pay) made up of £27,200 personal contributions and £6,800 tax relief?
Or do I also have to consider my employer's contributions to my DB pension? These are circa £6,500 per year. If I do have to include these in my calculation for tax relief, do I include only the £6,500 contribution my employer made to the DB pension scheme, or do I also include 20% tax relief on top making it £8,125?
Thank you for any help
