Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 18 Apr 2024 10:59:35 GMT by Asiadl
Hello HMRC Community, I hope you don’t find my question too dull. I am seeking clarification regarding maximum pension contributions and the related self-assessment declaration. My understanding is that one cannot normally claim tax relief on pension contributions exceeding 100% of their annual earnings (if lower than £60,000). However, the self-assessment section related to pensions requests that we declare both personal payments into my SIPP and the basic tax relief claimed by my pension provider. For example, if my total income is £31,000, is it permissible for me to contribute to my SIPP the entire amount minus £1000 already invested in my workplace pension and then report a total of £37,500 on my self-assessment, which includes both my personal payments into the SIPP and the basic rate tax relief? I assume that reporting an amount higher than my total earnings will not be an issue because HMRC understands that it includes the tax relief? This would increase my basic rate limit by £37,500, thereby reducing the amount of my income that is charged at the higher rate of tax. I just would like to be sure that this would not result in any penalties. Thank you in advance for any insights or guidance you could provide.
Posted Tue, 23 Apr 2024 15:21:11 GMT by HMRC Admin 25
Hi Asiadl,
Please refer to guidance here:
Tax on your private pension contributions
Thank you. 

You must be signed in to post in this forum.