Income & Take-home · 2026/27 tax year
Pension contribution tax relief calculator UK 2026/27
See how much Income Tax a gross pension contribution could save for a sole trader with only trading income, by reducing taxable profit (relief at source / gross lump assumptions explained on-page).
Taxable profit before pension: £42,430
Taxable after pension: £37,430
Income Tax before: £9,432
Income Tax after: £7,486
Estimated Income Tax saving: £1,946
Understanding your results
Higher-rate taxpayers often receive basic relief in the pension and reclaim the rest on Self Assessment — this page’s “tax saved” line is closest to the basic marginal story; ask your adviser how carry-forward interacts with taper.
The annual allowance includes employer contributions in employment contexts; for pure self-employed personal pensions the interaction is narrower but not zero if you have other pots.
Salary sacrifice through a personal company is a different legal route than personal pension contributions from post-tax sole trader drawings.
Investment risk inside the pension wrapper is orthogonal to the tax break — do not chase relief into unsuitable funds.
State Pension accrual is not purchased by personal pension contributions; keep NI planning separate in your head.
Disclaimer: This is a guidance estimate based on the 2026/27 tax year. It is not personal tax advice — consult an accountant or HMRC for your specific circumstances.
About this calculator
Most personal pensions for the self-employed are paid gross and claimed through Self Assessment — the contribution extends your basic rate band in complex ways for higher earners. Here we approximate by reducing taxable income, which matches basic-rate intuition but may understate additional-rate quirks.
Annual allowance, taper, and carry-forward are not modelled. If you or your employer already contributed elsewhere, check your allowance before relying on this figure.
National Insurance is not reduced by pension contributions for sole traders in the same way as employee auto-enrolment salary sacrifice.
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