Pension Contributions Calculator

Basic rate taxpayers receive 20% tax relief added to their pension pot, while higher and additional rate taxpayers can claim 40% and 45% respectively through their self-assessment. For example, a £100 contribution costs a basic rate taxpayer only £80 after relief. All contributions up to the annual allowance of £60,000 are eligible for this relief in the 2026/27 tax year.

The standard annual allowance for the 2026/27 tax year is £60,000, allowing you to contribute this amount before incurring a tax charge. If your adjusted income exceeds £260,000, your allowance may be tapered down to a minimum of £10,000. You can carry forward unused allowance from the previous three tax years to boost your current contribution limit.

If you have accessed your defined contribution pension flexibly, your Money Purchase Annual Allowance is restricted to £10,000 for 2026/27. This limit applies specifically to contributions into money purchase arrangements, such as personal pensions or workplace schemes. Exceeding this threshold results in a tax charge on the excess amount at your marginal rate.

Yes, you can carry forward unused annual allowance from the 2023/24, 2024/25, and 2025/26 tax years to the 2026/27 tax year. To use this, you must have been a member of a registered pension scheme in those years and have used your current year's allowance first. This flexibility allows high earners to make larger contributions without triggering an annual allowance charge.

Exceeding the £60,000 annual allowance triggers a tax charge on the excess amount, which is added to your income for that year. The charge is calculated at your marginal rate of income tax, meaning higher rate taxpayers pay 40% and additional rate taxpayers pay 45% on the surplus. You can avoid this charge by ensuring contributions stay within the limit or by utilising any available carry-forward allowance.