Calculator + Guide

Self-Employed Pension Relief Calculator 2026/27

Published by the UK Money Calculators editorial team. Last updated for the 2026/27 tax year.

Self-employed people get the same pension tax relief rates as employees: 20%, 40% or 45%. But the delivery is different. You use a SIPP or personal pension under relief at source, and you claim any higher-rate relief yourself via Self Assessment. Use this calculator to estimate your relief and net cost.

Self-Employed Pension Relief Calculator

2026/27
£
Your net relevant UK earnings (not dividends)
£
Amount you actually pay, provider adds 20% on top
Gross into pension (after provider top-up)£10,000
Basic-rate relief (provider claims automatically)£2,000
Extra relief to claim via Self Assessment£2,000
Total relief£4,000
Net cost after all relief£6,000
Your marginal rate40%

Self-employed pension limits 2026/27

Two limits apply. The lower one is binding:

You can contribute up to £2,880 net (£3,600 gross) per year and still get the 20% top-up even with zero income. That is a unique feature of relief at source.

Carry forward: Use unused annual allowance from the previous three tax years to make larger contributions in a high-profit year. Available carry forward is (£60,000 − prior year inputs) for each of 2023/24, 2024/25 and 2025/26. See the carry forward calculator.

Basic-rate taxpayer: £240/month example

Amy, sole trader, trading profit £38,000:
  • Pays £240/month net into SIPP
  • Provider adds 20%: pension receives £300/month gross
  • Annual net paid: £2,880 / Annual gross in pension: £3,600
  • Total annual relief: £720 (20%), no SA claim needed
  • Net cost: £2,880 for £3,600 in pension

Higher-rate taxpayer: claiming the extra 20%

Ben, sole trader, trading profit £65,000:
  • Pays £10,000 net to SIPP
  • Provider tops up to £12,500 gross
  • Via Self Assessment: claims extra 20% = £2,500
  • Total relief: £5,000 (40%)
  • Net cost of £12,500 in pension: £7,500

File your SA return by 31 January 2028 for 2026/27. Enter the gross contribution (what is in the pension, not what you paid).

Class 4 NI: no saving, but ANI matters

Unlike employees on salary sacrifice, self-employed pension contributions do not reduce Class 4 NI (6% on profits £12,570–£50,270, 2% above). Class 4 is calculated on trading profits before pension contributions.

But SIPP contributions do reduce adjusted net income (ANI), which matters for:

Also see the full self-employed guide
Self-Employed Pension Guide SIPP Tax Relief Calculator

Frequently asked questions

Can I contribute to a pension if I had a loss this year?

You can contribute up to £2,880 net (£3,600 gross) and still receive the 20% top-up regardless of income. Above that, personal contributions need relevant UK earnings to attract tax relief. If you have a loss year, defer larger contributions to a profit year where possible.

Do dividends count towards my contribution limit?

No. Dividends from a limited company do not count as relevant UK earnings for personal pension contributions. A director drawing £10,000 salary and £80,000 dividends can only contribute £10,000 in personal contributions with tax relief. The company can make employer contributions up to the £60,000 AA without the earnings cap (subject to 'wholly and exclusively' test).

How do I enter my pension contributions on my SA return?

In the SA100, look for 'Paying into registered pension schemes and overseas pension schemes'. Under 'Payments to registered pension schemes where basic rate tax relief will be claimed by your pension provider (also known as relief at source)', enter the gross contribution (the amount in the pension, including the provider's top-up).

Disclaimer: Estimates only, not financial or tax advice. Consult a qualified adviser for personalised guidance. Sources: GOV.UK: Pension tax relief.