Contribute to save more for your retirement

How much can I contribute?

Your contribution levels will depend on your personal circumstances. In summary, you can pay into your pension up to 100% of your earnings, with tax relief applied to contributions of up to £40,000 for the tax year. Any contributions made by you and your employer count towards it, as does any basic rate tax relief added by the government.

If you don’t pay tax or have no earnings at all, you can still contribute to your pensions by £2,880 each tax year, for which you then also receive £720 as tax relief.

What are the benefits of contributing?

Gain access to tax-free investing. Your pension can grow free of UK income and capital gains tax.

Get up to 45% tax relief in your pension each tax year.

Grow your pension pot free from inheritance tax, passing on wealth in a tax efficient way.

Benefit from the opportunity to shelter up to £40,000 per tax year

iSIPP is for investors who are comfortable self-managing their pension account and can make their own investment decisions. As with all investing, your capital is at risk. The value of your portfolio with us can go down as well as up and you may get back less than you invest. We do not provide investment advice.

Pension and tax rules may change and benefits you receive will depend on your personal circumstances. You can contribute into your SIPP if you are a UK resident with relevant UK earnings. The maximum amount you can contribute will depend on your personal circumstances and based on pension annual allowance.

Contribution FAQs

Can you contribute more than your personal allowance?

Yes. You can contribute more than your allowance as long as you do not exceed your UK earnings. For any contribution above your allowance, a tax charge known as the annual allowance charge will be applied and it will effectively cancel out the tax relief you receive over the allowance.

To understand your current allowance you should also consider any contributions that your employer makes for you, as these also use up your annual allowance.

The ‘Carry Forward’ rule permits individuals to contribute more to their SIPP than the £40,000 annual allowance and still benefit from tax relief, as long as they have any unused allowance in the last three tax years.

In order to use the benefits of the rule, you must have:

  • Been a member of a pension scheme in each tax year from which you carry forward, even if you did not make any contributions.
  • Used up your full annual allowance in the current tax year.
  • Contributed less than £40,000 in one or more of the last three tax years. (This includes personal and employer contributions.)
  • Earnings of at least the amount you are contributing in that tax year, if you are making personal contributions.

What happens if you have income of more than £240,000?

In the instance where your adjusted income is over £240,000, your annual allowance could be as little as £4,000. This means your annual allowance of £40,000 is tapered. Your adjusted income is broadly your total taxable income, plus any pension contributions paid by your employer.

Why should I choose iSIPP?

Easy and
secure online account

Simple and accessible 24/7, you can set up your account online. You only need a few personal details to get started and we’ll do the rest.

Our award-winning platform gives you access to manage and regularly monitor all your investments under one account.

Simple and
transparent pricing

We know that you need your personal pension to be as straightforward as possible.

Our pricing is transparent and competitive, with no hidden charges. See our fee schedule here and take a look at the Fee Calculator to check the cost for your investments.

Dedicated and
expert support

Every client is well looked after with unrivalled service. Have any questions? We’d be happy to answer them. Simply choose your preferred contact method below – phone, email, or through our enquiry form – and a member of our team will be there to support you.

Peace of mind
and transparency

iSIPP is part of a wider pensions business with over two decades of experience and we are authorised and regulated by the Financial Conduct Authority.

What’s more, your funds are also protected by UK’s Financial Services Compensation Scheme.

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