SIPP Contributions
SIPP Contributions
Author
Discussion

PurpleFox

Original Poster:

507 posts

115 months

Wednesday 23rd March 2022
quotequote all
Noob question - if I started a SIPP, and assuming I could add funds, are my assumptions below correct:

- Max contributions 100% of salary or £40k per year
- 40% tax payer, if I add £10k:
- Government adds £2,500 (20%)
- Tax Claim back £2,500 (20%)


How and when do I get the tax back - is it calculated on tax return?

Also how / when do the 'government' pay their share.

Thanks in advance.

btdk5

1,862 posts

220 months

Wednesday 23rd March 2022
quotequote all
20% normally added by the SIPP provider.
20% needs to be claimed on self assessment.

PurpleFox

Original Poster:

507 posts

115 months

Wednesday 23rd March 2022
quotequote all
Thanks beer

rustyuk

4,725 posts

241 months

Wednesday 23rd March 2022
quotequote all
20% of 10k is 2k

supersport

4,639 posts

257 months

Wednesday 23rd March 2022
quotequote all
rustyuk said:
20% of 10k is 2k
It’s 20% of the gross amount so 20% of £12500 which is £2500.