SIPP for contractor / tax relief

[CDP90]

I am looking for some advice on pension. I get paid 'net' amount from my employer after tax (45%) and NI deduction. As a day rate contractor, I don't have any pension contribution from my employer, and I have not been putting any amount to SIPP.

I have opened a SIPP account recently with Hargreaves Lansdown. So my question is, should I be putting money to my SIPP account from already taxed salary?
I have been reading that I can get SIPP tax relief from the government. How does this work? Do you declare during tax return? What's the maximum you can put?

Second question - can I put the money into my SIPP account for previous years I have missed? If so, how does the SIPP tax relief works? How do you declare this?

Any advice is much appreciated.

Many thanks

[Paddy]

Open up a Panama Company and register your logo and name. Charge your UK Ltd 85% of earnings to use the logo and brand. Pay UK tax on the 15% draw cash from the Panama account.

[northernladuk]

Wow. Where to start with this one.

If you are employed, you are employed. You can forget the day rate contractor bit, that's irrelevant. You say your employer doesn't offer you a pension? They should offer you a pension, it's the law. Who is your employer? An umbrella or directly with a client or what? Whoever is your employer should offer you one. First task is to go back to your employer and find out why they have not offered you a pension.

If they had they can put a certain amount of your pay, pre tax in to that and you pay tax on what is left so lowering your tax burden.

https://www.gov.uk/employers-workplace-pensions-rules

No, you should not be putting already taxed money in to a private pention. As mentioned before, by law, your employer must give you a pension. I am assuming you've not opted out of it? If you have, opt back in.

Find out what's going on with your employer and if they haven't met their legal duties go find an employment lawyer and get some advice.

[Smartie]

No, you should not be putting already taxed money in to a private pention.

This is simply wrong.

You are perfectly entitled to put income that has been taxed into a SIPP and this is noted on your tax return at which point you can reclaim the tax.
There are many reasons why someone might want to do this but it's important that people understand that this is entirely normal.

Employers generally only pay up to a certain amount and salary sacrifice may not be available. You might want to keep cash on hand and add it to the pension at the end of the year. Etc.

[northernladuk]

This is simply wrong.

You are perfectly entitled to put income that has been taxed into a SIPP and this is noted on your tax return at which point you can reclaim the tax.
There are many reasons why someone might want to do this but it's important that people understand that this is entirely normal.

Employers generally only pay up to a certain amount and salary sacrifice may not be available. You might want to keep cash on hand and add it to the pension at the end of the year. Etc.

It's not in the context above. He hasn't got a pension with his employer so he's asking should he put post tax money in to one in abscence of an employer one. The answer is no. He needs to sort a pension with his employer and put it in pre tax instead.

He can do it but it would be pretty stupid to do in the OP's situation. Can he put MORE in once his employer one is sorted then yes but baby steps first.

[Smoggy]

You can use your previous year's pension allowance, going back 3 years, but
1) You must have been enrolled in an eligible pension scheme in the year you're using backdated allowance from, and
2) your gross pension contributions in any year cannot exceed your relevant earnings from that year. So all very well having £100k of unused allowance. But if you only earn £25k this tax year then that's the most (gross) you can contribute.

Is your employer an umbrella company. If so, check if they will make employer contributions to your SIPP using salary sacrifice. This is better than contributing from taxed earnings as you will save on employers and employees national insurance as well as tax. If they don't, change umbrella to one that does.