Maximising Pension Contribution

A question about : Maximising Pension Contribution

Hi,

Say I have a salary of Ј20,000pa additionally my employer makes a pension contribution of Ј4,000pa under a salary sacrific arrangement.
What is the maximum amount I'm allowed to contribution to my pension plan for the year.....presumably it is either (a) Ј20,000 or (b) Ј16,000 ?

Best answers:

• Thanks both.
  I didn't mean the salary sacrifice bit.
  I was suggesting that, to maximise my pension contributions this year, in addition to the SS - could I pay a net contrib of Ј16,000 which would get grossed to Ј20,000 (based on contributing 100% of earnings of Ј20,000) ?
• What I meant to ask was based on a salary of Ј20,000, I could pay a maximum pension contribution, for tax relief purposes, of Ј16,000 net (Ј20,000 gross).
  Is that maximum figure affected by the fact that in addition to the above salary my employer makes an additional Ј4,000 SS payment to my pension.
• The maximum tax relievable contribution to your pension across all pension arrangements in any one year is Ј40,000 (plus top up if applicable see here https://www.gov.uk/tax-on-your-priva...nual-allowance).
  In your particular case, you have your occupational pension for which the employer/ government contribution is Ј4000 per annum and a PP/stakeholder/SIPP?
  Your taxable income is Ј20,000. You can therefore contribute Ј20,000 gross (Ј16000 net) to your PP/stakeholder/SIPP outside your employer's arrangement and be well within the annual tax relievable allowance.
• You can make the contribution to your stakeholder of Ј16000 and the provider will claim tax relief of 20%.