What it does
Money you put into a UK pension gets tax relief: the government gives back the tax you paid on it. How you get it depends on your scheme. With relief at source you pay 80% and your provider adds 20%; higher-rate payers claim the rest themselves. With net pay your employer takes the pension before tax. With salary sacrifice you also save National Insurance. This calculator shows all three side by side for 2026/27, with Scotland’s own bands, and checks your contributions against the annual allowance, the taper for high earners and carry-forward. Add your date of birth to see your State Pension age.
See your whole payslip with the UK tax calculator, then plan how long the pot lasts with the retirement planner.
How to use it
- Choose where you live and type your salary and any other taxable income.
- Type what goes into your pot a year, including the relief (the gross amount), and what your employer adds.
- If you might go over the allowance, type any unused allowance from the last three years.
What each option does
- Relief at source: the table shows what leaves your bank (80%), the higher-rate claim and the real cost.
- Net pay: relief at your top rate straight away, but nothing if you earn under the personal allowance.
- Salary sacrifice: as net pay, plus National Insurance saved.
- Money purchase allowance: if you have already drawn taxable money flexibly, only £10,000 a year can go into defined contribution pensions without a charge.
Worked example
Priya lives in England, earns £60,000 and puts £5,000 gross into a personal pension. She pays £4,000; her provider adds £1,000. £5,000 of her income was taxed at 40%, so she claims another £1,000 back: the real cost is £3,000 and the relief £2,000 (40%). Through salary sacrifice it would cost £2,900, as she also saves £100 of NI. In Scotland on £50,000, £4,000 gross gets 42% relief: £800 added and £880 to claim.
FAQs
How do I claim the higher-rate relief? Through your Self Assessment return, or by asking HMRC if you do not file one.
What is the annual allowance charge? Tax on savings over your allowance, at your top rate. The figure here is an estimate.
Is anything saved? No. Nothing you type leaves the page. Not financial or tax advice; check the official source.
Where the numbers come from
- Relief at source, net pay, higher and additional rate claims, Scottish rates (1% at 21%, 22% at 42%, 25% at 45%, 28% at 48%), relief on up to 100% of earnings and £2,880 net with no earnings: GOV.UK, https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief (checked 2026-11-10)
- Annual allowance £60,000 and carry forward from the previous 3 tax years: GOV.UK, https://www.gov.uk/tax-on-your-private-pension/annual-allowance ; taper over £200,000 threshold income and £260,000 adjusted income, £1 for every £2, minimum £10,000: HMRC PTM057100, https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm057100 (checked 2026-11-10)
- Money purchase annual allowance £10,000, no carry forward: GOV.UK, https://www.gov.uk/guidance/work-out-your-allowances-if-youve-flexibly-accessed-your-pension (checked 2026-11-10)
- 2026/27 Income Tax bands and NI: as the UK tax calculator (GOV.UK, Rates and thresholds for employers 2026 to 2027). State Pension age: GOV.UK, https://www.gov.uk/government/publications/state-pension-age-timetable/state-pension-age-timetable (checked 2026-11-10)
Standard scientific values, such as constants, atomic weights and melting points, are facts found in every textbook; we name where ours were checked. If you are an author or publisher and want a value, a credit or a table changed or removed, tell us and we will act quickly.
Last updated 2026-11-10.