Joseph

Hi Amy, I was very confused about this issue and couldn't really find any answers anywhere so I bit the bullet and paid for a one off tax consultation with a financial adviser. After laying out my situation I was advised that I should put my income (before tax) into the sipp, which would then be topped up by 20% automatically. I couldn't find a way or provider who wouldn't automatically add the 20%. I was then told to put the income invested plus the 20% top up (I.e. total into sipp per year) into my tax return. I was advised that HMRC would then essentially adjust my tax code to adjust for these pension contributions, taking into account the 20%. The way I understand this I won't be liable for a tax bill, my personal allowance will just be raised less than it would have been if I had already paid tax on the money. All this said, I have still not completed the tax return for 23/24 so all of this hasn't been tested yet! I'm hoping I don't get a big shock. The financial adviser seemed to think it was very straightforward. I would be interested to see if anyone else or HMRC had a take on this. I will report back when I do my tax return soon!

Hi, I'm hoping to get some advice on a question I have. I am employed on PAYE and pay into a workplace pension on my earnings of around £70,000. I also do some infrequent extra work in another job and I'm paid this income untaxed, around £3000 per year. I complete a self assessment on this income and pay 40% tax as I'm a higher rate taxpayer. I want to put the income from this second job into a SIPP but am unsure of the tax implications. As I understand it i will automatically receive extra 20% top-up on what I contribute as it is assuming I'm a basic rate taxpayer, but I haven't paid any tax on this income before I put it in the SIPP. I can also claim the extra 20% tax relief via self assessment form but again I haven't paid tax on this income. If I get the 20% from SIPP provider and and claim 20% tax relief then I'm at 140%! Is there a way I can put untaxed income in a SIPP but not get relief so I just come out at neutral? Sorry if this is confusing Many thanks, Joe