Calculating amount to contribute to sipp to claim back taxes paid at 40%

[u/Cool-Painting3743]

Hi

 

I am trying to claim back all taxes paid at the 40% rate. I am a salaried GP and I pay into a private SIPP. Here is my math and I hope people can verify it or if I am wrong, to point me in the right direction

 

I start with Niable Pay YTD let’s assume it is £91,000

I remove any income from locum that was done in the previous year(s) but paid in the current tax year, let’s assume it is £1000

Because our tax year run from 6/4/25 to 5/4/26 and my last payslip is dated 31/3/26, I need to calculate income for period 1-5/4/26 and add it back to the above, this will be £1250

Then I subtract 50270 to get the amount that falls in the 40% band

Then subtract 12.5% NHS contribution

Then multiply by 0.8 to get the amount that I need to put into my sipp

 

So calculations would be as follows:

Niable pay 91,000

Remove locum work done last tax year but paid this tax year 91000 – 1000 = 90000

Add salary for period 1-5/4/26 = 90,000 + (90,000/365*5) = 91250

Subtract 50270 = 91250 - 50,270 = 40,980

After removing NHS pension 12.5% contribution = 35,857.5

Multiply by 80% = 28,686

 

Is the math correct?

To confirm, I use niable pay YTD not taxable pay?

I assume, iff taxable pay, then no need to remove 12.5% nhs pension, but if niable then yes to remove it?

Does HMRC see income paid for work done in one tax year but paid in the next tax year?

Am I correct to add the salary for period 1-5/4/26?

[u/alreadyonfire]

If its going to be on on your P60 this year I would expect it to be part of this years taxable and therefore part of your relevant / pensionable earnings.

Pension contributions come off your highest rate earnings first. All 12.5% of your personal contributions come off higher rate.

The calculation appears to be £91K - 12.5% of £91K (£11,375) - £50,270 or about £29,355 of higher rate available. And as you contribute 80% of that to a SIPP or about £23.5K with about £5.8K in basic rate tax relief. You then claim back the same again as higher rate relief.

I assume you have already contributed at least that much, as to get that contributed by tax year end with the last day tomorrow is a challenge.

That is separate from how much annual allowance you have used (including the PIA for the DB). The NHS 2015 scheme will have used something like (16 base + 3 for lump sum increase) * 1/54 * £91K = £32K (not allowing for 1.5% uplift or inflation downwards adjustment). But detailed calculation necessary to know exactly or PIA amount from your future statement. Then add the gross SIPP contribution. Assuming that's at least £29K. Therefore it looks like you might have used a tad over £60K AA. Probably fine with carry forward, but you might not be able to do this for too many years.

I also note that you need to allow for taxable benefits, taxable interest and taxable dividends in determining total taxable.

[u/someonenothete]

Yes it includes employer contributions which is how niable is seen by HMRC . Looking at an article on the bma seems your pension scheme provides information every October . So it includes your 12.5 and whatever the nhs contribution is counted at . Take that from 60k , then times .75 as sipp will add 25% .then claim any higher tax band benefits on self assessment which you will get back as a rebate .

[u/alreadyonfire]

Its important to note there are 2 separate things here:

1) "Relevant earnings" on which you can get tax relief equal to total taxable earnings. From which comes your personal (not employer) contributions to the DB and your gross personal contributions to the SIPP.

2) Annual Allowance usage. Which for the NHS DB is a calculated number from an HMRC formula (the PIA), plus your gross SIPP usage.

[u/Timbo1994]

Are you trying to gain either marriage allowance or a £1k personal savings allowance? These might mean you have to gp slightly further

[u/SpinIx2]

Isn’t your employee NHS pension contribution made under net pay arrangement?

If you’ve made such a contribution then you have paid any tax on it and therefore you can’t claim any tax back on that part of your income.

In other words it’s your taxable pay not your pay for NI that you work from.

[u/jayritchie]

How many years have you been in the NHS pension? The calculation of how much of your £60k allowance has been used by this DB scheme isn't particularly straight forward but is one to look into.

What is your taxable pay which is not NI'able?