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Pension Annual Allowance



Answer
phil131089
Posted Wed, 14 May 2025 22:05:50 GMT by phil131089
I have a workplace pension and make salary sacrifice contributions. After this, my taxable income in £25k. Can I then contribute £25k into a SIPP (20+5 tax relief) OR Do I need to deduct salary sacrifice (employer) contributions from the taxable income first?
Answer
Clive Smaldon
Posted Thu, 15 May 2025 15:18:33 GMT by Clive Smaldon
Not HMRC, the P60 is the figure of taxable earnings remaining available for pension contributions, and is after salary sacrifice, you need to be careful you dont stray over contribution limits re max allowance of £60k (taking account of salary sacrifice pension paid and other factors if appropriate)
Answer
HMRC Admin 21 Response
Posted Fri, 16 May 2025 07:31:36 GMT by HMRC Admin 21 Response
Hi phil131089,
The employer contributions are taken into account when looking at the pension annual allowance of 60k. The amount you then pay into your pension is up to you but tax relief is restricted to your earnings.
Thank you.

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