Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Maximize Your SIPP - Unlock Pension Tax Relief Explained

27 Sept 2025 · 1 min

Watch on YouTube

1:06

Excerpt from a YouTube video by Ndubuisi 'Andy' Egwim explaining how personal pension (SIPP) tax relief works in the UK. The speaker uses an example where a 20% taxpayer receives tax relief at their marginal rate, so to reach a £60,000 pension contribution after relief they would need to contribute £48,000 personally because tax relief (20%) adds the remainder. The clip also raises the question of employer contributions.

Questions this video answers

£60,000

£48,000

Marginal rate; example uses 20% tax relief.

Chapters

I don't work in the NHS or I don't work for anyone, I work for myself, I'm still allowed 60,000. If I go and say, well, I'm going to put £60,000 direct into my seat, that will create some problems for me. Why? Because let's assume I'm a 20% tax rate payer. I'm going to get of whatever money I've put in my pension, added to my pension from the government. So if you put money in your sip, they're going to give you tax relief based on your marginal rate. So if you're a 20% taxpayer, you're going to get 20% tax relief. So that means that if I want to get to 60k, I put in 48,000, okay? So if I put in 48,000, by the time they add in the tax relief, I can get to £60,000. Okay? So that's how to work these things out. But the big question some people ask is how do you know what your employer is contributing? So anyone knows is a simple one. And if you've been in our money wide vector community or you're in the mastermind, you know this one.