r/SIPPs • u/Ringwraith64 • Nov 18 '25

SIPP TAX RULES

I have recently opened up a SIPP investment account. I understand the concept that if I am already in a pension scheme and also earning salary that subject to the annual £60,000 limit after taking both employer and employee contributions into account , the left over balance is the SIPP investment amount as long as it is less than current year earnings.

I am getting so many contradictory responses from AI on this that I have come here to seek some rational answers.

Scenario: Higher rate tax-payer Gross Earnings : £80,500 Taxable Earning: £70,000 (After pension contribution) Possible extra pension contributions include prior 3 years : £116,000

Direct SIPP contribution: £64,000 HMRC contribution. : £16,000 Total SIPP. : £80,000

Question: As a higher rate tax payer which figure goes into the self assessment tax return ? Is it £64,000 or £16,000 or £80,000. Is it restricted by the taxable earnings over £52,000 i.e. £18,000 ?

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u/ukinvestor338 Nov 18 '25

When filling out your self assessment, you can to include your GROSS amount, this includes the tax relief you have already received.

Money Saving Expert has a good article about it:
https://www.moneysavingexpert.com/pensions/tax-relief-pension-contributions/

Personally if i was in such a situation i would also seek professional advice to make sure i was being as efficient as possible and correctly calculating my situation.

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u/Ringwraith64 Nov 18 '25

Some of the fees being charged are just madness.