Pension contributionThe real cost to youNo client linked

What it really costs.

Enter a gross contribution and see the net cost once tax relief, any restored personal allowance and any lower High Income Child Benefit Charge are netted off — before vs after.

Real net cost of £5,000.00£2,405.00

See the working

Worked example.

— Inputs

Tax year

Scottish taxpayer status

Relief at source. Switches non-savings bands; savings & dividends are UK-wide.

Children (Child Benefit claimed)

Relationship during benefit weeks

Same partner throughout every benefit week. Partner means the claimant’s spouse, civil partner or cohabiting partner.

Child Benefit claimant

Resolves liability if both ANI figures are equal.

Partner's adjusted net income

Known individual ANI, including £0. HICBC uses the higher figure.

Non-savings income (gross)

All non-savings income: salary, self-employment profits, pension in payment and property income. The tool taxes this figure and tests the s.190 relief limit against it. Pension in payment and most property income are not relevant UK earnings, so if the figure includes them, the limit shown may be too high, and so may the relief if the contribution is more than the client's relevant UK earnings.

Gross pension contribution

The amount landing in the pension (relief at source).

Savings income

Interest etc. 0 if none.

Dividend income

0 if none.

Real net cost of £5,000.00

£2,405.00

Effective relief 51.9% on the gross contribution.

Worked example. These are prefilled values, not your client’s. Change the inputs to see your own case.

Child Benefit assumed for 2 children, the same partner throughout, with partner's adjusted net income of £0.00. This is part of the example, and the net cost above includes any Child Benefit the contribution keeps. Set Children to 0 if none.

Where the relief comes from

Tax-relief limit (s.190)£65,000.00

Contribution attracting relief£5,000.00

Basic-rate relief at source£1,000.00

Income tax saved beyond relief at source (higher / additional-rate relief, incl. any restored personal allowance)£1,000.00

Child Benefit retained£595.00

Total relief + saving£2,595.00

Before → after

Adjusted net income£65,000.00£60,000.00

Personal allowance£12,570.00£12,570.00

Income tax£13,432.00£12,432.00

HICBC£595.00£0.00

HICBC basis: this client is liable on the ANI and claimant basis entered.

Method · FA 2004 s.188–192 · s.190 relief limit · ITA 2007 s.35 · ITEPA 2003 s.681B–H

For planning and illustration purposes only · This tool does not constitute financial or tax advice.

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