Calculator + Guide

Self-Employed Pension Relief Calculator 2026/27

Written by James Whitfield·Updated August 2026·Checked against 2026/27 HMRC rates

Self-employed people get the same pension tax relief rates as employees — 20%, 40% or 45% 1 — but the delivery differs. You use a SIPP or personal pension under relief at source and claim any higher-rate relief yourself via Self Assessment. Use the calculator to estimate your relief and net cost.

Key takeaways
  • Relief comes through relief at source — the provider adds 20%, you claim 40%/45% via Self Assessment. 1
  • Contribute up to the lower of £60,000 or 100% of your trading profit; dividends don't count as earnings. 2
  • No earnings? You can still pay £2,880 net (£3,600 gross) and get the 20% top-up. 1
  • No Class 4 NI saving, but contributions cut adjusted net income (restoring the Personal Allowance, easing HICBC). 1
  • Carry forward unused allowance from the previous three years for a big profit year. 3

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:

  • Annual allowance: £60,000, total pension input limit across all pensions
  • 100% of relevant UK earnings, personal contributions limited to your trading profit (or salary if a director). Dividends do not count as relevant earnings.

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 · £65,000 trading profit · £10,000 net into a SIPP
Net contribution paid to the SIPP£10,000
Basic-rate relief added by provider (20%) → gross in pension£12,500
Extra higher-rate relief claimed via Self Assessment (20%)£2,500
Total relief (40%)£5,000
Real net cost of £12,500 in the 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:

  • £100k–£125,140: Restoring personal allowance, effective 60% relief in this band
  • £60k–£80k: Reducing or eliminating the High Income Child Benefit Charge
  • Near £100k: Preserving 30-hour free childcare eligibility
Also see the full self-employed guide

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).

Sources & references

  1. Pension tax relief — GOV.UK
  2. Pension annual allowance — GOV.UK
  3. Check for unused annual allowance (carry forward) — GOV.UK

Every headline figure above is checked against the official GOV.UK / HMRC guidance listed here for the 2026/27 tax year. Links open on GOV.UK.

Disclaimer: Estimates only, not financial or tax advice. Consult a qualified adviser for personalised guidance. Official sources are listed above.