Pension Contribution Optimiser — See Your Tax Relief for 2026/27
Pension contributions reduce your taxable income. For basic rate taxpayers, every £1,000 contributed saves £200 in tax. For higher rate taxpayers, it saves £400. And for anyone caught in the Personal Allowance taper between £100,000 and £125,140, the effective relief is 60%. This tool shows you exactly how much a pension contribution would save at your income level.
How to use
Set your annual gross income and any existing pension contributions. The tool shows your current marginal tax rate, available annual allowance, and calculates the tax saving for several contribution amounts. It also highlights the 60% taper trap and shows how a pension contribution can rescue your Personal Allowance.
Frequently Asked Questions
What is the 60% tax trap?
Between £100,000 and £125,140, your Personal Allowance is withdrawn at £1 for every £2 of income. This creates an effective marginal tax rate of 60%. A pension contribution that brings your adjusted income below £100,000 restores your full Personal Allowance and effectively gives you 60% tax relief on that contribution.
What is the pension annual allowance?
The annual allowance for 2026/27 is £60,000. This is the total pension contributions (yours plus your employer) that receive tax relief in a year. You can carry forward unused allowance from the previous 3 years if you were a member of a pension scheme during those years.
Does salary sacrifice give extra savings?
Yes. Salary sacrifice pension arrangements reduce your gross salary before NIC is calculated, saving both income tax AND National Insurance. This tool shows income tax relief only. The NIC saving from salary sacrifice would be additional.
What if I earn over £260,000?
The annual allowance is tapered for adjusted income over £260,000. It reduces by £1 for every £2 of income above £260,000, down to a minimum of £10,000. This tool accounts for the taper.
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Book a Free Discovery Call© Imperial Consulting Limited, trading as Grosvenor.Solutions. This tool is for illustrative and educational purposes only. It is not tax advice. Your circumstances may differ. Always consult a qualified professional before making tax decisions. Calculated using 2026/27 HMRC published rates for England, Wales and Northern Ireland.