Pension tax relief calculator

How little could your pension contribution cost you?

No matter how much tax you pay, as long as you’re under 75 and resident in the UK for tax purposes, you’ll automatically get a 20% top up in tax relief from the government on anything you pay into a pension.

For example, if you pay £8,000 into your pension, the government will add an extra £2,000, bringing the total amount to £10,000. You can claim even more through your tax return if you pay tax at a higher or additional rate.

If you’re a Scottish tax payer slightly different tax bands and rates apply to your income which could affect how much tax relief you receive. Make sure you tick the ‘I pay income tax in Scotland’ box below.

Calculate your tax relief

Your annual income

How much would you like to contribute £

I pay income tax in Scotland

About your results

This calculator isn’t personal advice and doesn’t confirm whether you’re eligible or how much you can pay in to a pension. Results are a guide based on 2020/21 tax rules, and can’t cover every nuance. Tax rules can change and the relief you receive will depend on your circumstances. Any contributions you make into a pension over your annual allowance could trigger a tax charge. Remember, your annual allowance may be reduced if you’re a high earner or have taken flexible pension benefits. Find out more on how much can be paid into a pension.

Assumptions used

The calculator covers the income tax bands and the proportion of the contribution that falls into each one; the personal allowance (£12,500 in 2020/21) and the gradual loss of personal allowance between an income of £100,000 and £125,000. However, other factors may affect how much tax relief you're eligible to claim. Tax relief can only be claimed on contributions up to your earnings (or £3,600 if you’re not working) Non-Scottish UK taxpayers must pay sufficient tax at the higher or top rate to claim the full higher (40%) or top (45%) rate tax relief. Scottish UK taxpayers must pay sufficient tax at the Scottish intermediate, higher or top rate to claim the full Scottish intermediate (21%), higher (41%) or top (46%) rate tax relief. View more on Scottish income tax.

Guide to pension tax relief

Start a pension today

If you want to take charge of your investments, as well as benefit from tax relief, you could consider paying into a HL Self-Invested Personal Pension. You can make monthly contributions from as little as £25 and as many one-off payments as you like (£100 minimum). Remember money in a pension can’t normally be taken until 55 (57 from 2028). Investments fall as well as rise in value so you could get back less than you put in.

Start a SIPP Top up your SIPP

Top-up your SIPP

If you want to take charge of your investments, as well as benefit from tax relief, you could consider topping up your HL SIPP. You can make monthly contributions from as little as £25 and as many one-off payments as you like (£100 minimum). Remember money in a pension can’t normally be taken until 55 (57 from 2028). Investments fall as well as rise in value so you could get back less than you put in.

Top up your SIPP Start a SIPP

For more details of the Scottish rate of Income Tax please see GOV.UK

This is your current annual taxable income. It will be used to calculate the amount of tax relief you are eligible to receive.

This is the gross lump sum contribution you would like to pay into your pension. It will be used to calculate the net amount you'll actually pay and the basic rate tax relief you'll receive from the government. A £40,000 annual allowance currently applies to most people, although you may be able to carry forward unused allowances to invest as much as £160,000 now. The figures are for the 2020/2021 tax year.

Why have we used these figures?

The chancellor will announce the outcome of a review of pension tax relief on 16 March 2016. It has been widely reported he is considering introducing a single savings incentive of between 25% and 33% for everyone.

It is important to note nothing has been confirmed. The chancellor could decide to change nothing or choose a different system.