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Posted 9 days ago by Sefton98 Sefton
I have recently joined the NHS DB Pension Scheme (2 months ago). I want to know the maximum I can contribute to my SIPP and receive tax relief on. I will be well under the annual allowance of £60,000. Under my old DC pension, I would just take my relevant UK earnings and subtract the employee + employer contributions. However, it does not appear as simple for DB Pension? My contribution to the DB scheme is 6.5% of earnings taken before tax. Am I right in thinking that this reduces my relevant UK earnings by 6.5% and therefore I can contribute the rest (93.5% of relevant earnings) to a SIPP and receive tax relief? I have also seen that it might be more complicated and involve calculating a pension input amount (PIA)? However, it does not seem possible to calculate this until after the tax year has ended...! Thanks.
Posted 3 days ago by HMRC Admin 21 Response
Hi,
HMRC cannot advise you on this as it is financial advise which we are not authorised to give.
Please see guidance at:
Tax on your private pension contributions.
Thank you.
Posted 3 days ago by Sefton98 Sefton
Hi, Thanks for the guidance. Would you be able to advise if I rephrased the question as below: Tax relief on pension contributions is limited to up to 100% of your UK earnings. Do employer contributions count towards this limit, or is it just personal contributions? My understanding is that it is only personal contributions that contribute towards this limit, but that all contributions are considered for the personal allowance (£60,000)? Thank you.
Posted a day ago by HMRC Admin 20 Response
Hi,
For tax relief it is only your own contributions.
For the £60k annual allowance, it is all contributions incuding any tax relief.
Thank you.

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