SIPP contribution calculation check

[Wondergirly]

I plan to open a SIPP this tax year and would like to put in as much as possible.

I will have self employed gross earnings of £8000, which after expenses will be £6000.

I also have pension income (from a previous job) of £6820 pa.

As I understand it, only the self employed earnings (after expenses, i.e. the taxable amount) are relevant for the amount of SIPP contributions I can make.

So, I can contribute £4800, the government will contribute £1200, making a total contribution of £6000.

I have no other pensions or income apart from the £6820.

I plan to stop work this summer and as I understand it I can still contribute £2880 pa to my SIPP each tax year starting from 25/26 until I am 75.

Are my sums/assumptions correct?

[mc2fool]

As I understand it, only the self employed earnings (after expenses, i.e. the taxable amount) are relevant for the amount of SIPP contributions I can make.

Legally speaking you can contribute as much as you like into your SIPP but it's only the relevant earnings that will attract the tax relief. However, many (most?) SIPP providers just won't accept contributions above the level that are eligible for tax relief.

The rest of your sums/assumptions are correct, although note that if your accounting period hasn't matched the tax year in the past, it has to from this year going forward. See https://www.mandg.com/wealth/adviser-services/tech-matters/pensions/tax-relief/pension-contributions-questions

[kempiejon]

As you pondered pensions do not count for tax relief, the term is relevant UK earnings. https://www.gov.uk/hmrc-internal-manual ... 0#earnings.

[Wondergirly]

Thank you both. Yes I'm only interested in contributing relevant earnings for tax relief.

My accounting period is the tax year though of course my earnings for this tax year (24/25) will not be reported until I do my tax return in January 2026. HMRC and my SIPP provider must marry up earnings and contributions after the fact?

[SteelCamel]

My accounting period is the tax year though of course my earnings for this tax year (24/25) will not be reported until I do my tax return in January 2026. HMRC and my SIPP provider must marry up earnings and contributions after the fact?

Your SIPP provider won't care, and HMRC probably won't unless they decide to check up on you. The tax system is based on self assessment, so it's up to you to stick to the rules. HMRC's role is only to police false declarations.