Yes! Your contributions can attract tax relief.
All eligible UK citizens can pay up to £3,600 gross each year or 100% of their relevant UK earnings (subject to the Annual Allowance or Money Purchase Annual Allowance if applicable), whichever is the greater.
The Scheme Administrator will claim basic rate tax relief from HMRC and invest it in your pension plan. For example, for a contribution of £10,000, you would pay £8,000 and the Scheme Administrator would reclaim £2,000 from HMRC (this example is based on 20% basic rate tax).
Contributions are made net of basic rate tax, irrespective of whether you are employed or self-employed.
If you pay income tax at a higher rate than the basic rate, you can claim the extra tax relief through your self-assessment tax return on your personal contributions.
Is there any tax relief on employer contributions?
Currently, Plum SIPP does not facilitate employer contributions.
When is tax relief paid into the SIPP?
It takes approximately 2-3 months for the tax relief to be added to your Plum SIPP account. A claiming month is between 6th and 5th.
The timings for the claim of the PTRAS on the SIPP product go as follows:
1 ) After the 5th of each month, the claim is made at the end of that month to HMRC.
2) The funds are then received around the 3rd or 4th week of the following month
Example:
Claim month - 6th April to 5th May
Claim made at the end of May
Funds paid into your SIPP by the 3rd/4th week of June