Making contributions yourself

Pension contributions you make yourself

SIPP providers will usually entitle you to make lump sum, regular monthly or quarterly contributions to your SIPP.

Gross contributions

Regardless of whether you have taxable earnings, you can make a gross contribution of up to £3,600 each year and receive basic rate tax relief (currently 22%). This makes the actual cost to you £2,808 net. Your SIPP provider can claim the other £792 from HM Revenue & Customs on your behalf and pay this into your SIPP on receipt.

Making larger contributions

There is no limit on the amount you can contribute in any one tax year, although the amount of tax relief that you can obtain is limited and contributions above a certain level may give rise to a tax charge.

Tax relief will be available on personal contributions of up to 100% of your taxable earnings in the tax year, or £3,600 if your earnings are below this level.

Your SIPP provider will automatically assume that personal contributions you make are paid net of tax and are eligible for tax relief unless you notify them to the contrary.

Higher rate taxpayers

All relievable personal contributions are made net of basic rate tax (whether or not you pay tax). Your SIPP provider claims basic rate tax and credits it to your SIPP when received. If you are a higher rate taxpayer, you can claim higher rate tax relief from HM Revenue & Customs through self-assessment. 

Please note that the information about tax rates and relief is based on information currently available. Tax relief and rates may be subject to change at a future date and will also depend on your personal circumstances.

You must remember that a SIPP may not be able to provide you with the pension you expect at your chosen retirement date. It is your responsibility to ensure that you make the correct level of contributions to provide you with the pension you expect at your chosen retirement date. All investments you make in a SIPP are subject to risk and the value of these investments can go down as well as up. You may not get back what you originally invested.