Accountants Pension Contribution Calculator Examples
Worked examples showing estimated personal and employer pension costs and annual allowance positions.
These worked examples show how different personal and employer pension contribution mixes affect estimated net cost and the allowance remaining. They are illustrative estimates based only on the tax rates and allowance entered.
Higher-rate taxpayer with company contribution
A company director plans a £10,000 personal payment and a £5,000 employer payment.
Input Summary
Personal contribution
£10,000
Employer contribution
£5,000
Other contributions
£0
Income tax rate
40%
Corporation tax rate
25%
Available annual allowance
£60,000
Calculation Breakdown
- 1Planned contribution£10,000 + £5,000£15,000
- 2Personal net cost£10,000 − (£10,000 × 40%)£6,000
- 3Employer net cost£5,000 − (£5,000 × 25%)£3,750
- 4Allowance remaining£60,000 − £15,000£45,000
Result Summary
Allowance remaining
£45,000
Accountants Pension Contribution Calculator
The estimated combined net cost is £9,750 for £15,000 of new pension funding.
Employer-only pension contribution
A company plans a £24,000 employer contribution after £18,000 of pension input earlier in the tax year.
Input Summary
Personal contribution
£0
Employer contribution
£24,000
Other contributions
£18,000
Income tax rate
40%
Corporation tax rate
25%
Available annual allowance
£60,000
Calculation Breakdown
- 1New contribution£0 + £24,000£24,000
- 2Total annual contributions£24,000 + £18,000£42,000
- 3Employer net cost£24,000 − (£24,000 × 25%)£18,000
- 4Allowance remaining£60,000 − £42,000£18,000
Result Summary
Total annual contributions
£42,000
Accountants Pension Contribution Calculator
The £24,000 employer contribution has an estimated employer net cost of £18,000, with £18,000 allowance remaining.
Personal contribution near the entered allowance
An individual has already made £48,000 of pension contributions and plans a further £15,000 personal contribution.
Input Summary
Personal contribution
£15,000
Employer contribution
£0
Other contributions
£48,000
Income tax rate
45%
Corporation tax rate
25%
Available annual allowance
£60,000
Calculation Breakdown
- 1Total annual contributions£15,000 + £0 + £48,000£63,000
- 2Personal tax relief£15,000 × 45%£6,750
- 3Personal net cost£15,000 − £6,750£8,250
- 4Allowance excessmax(0, £63,000 − £60,000)£3,000
Result Summary
Total annual contributions
£63,000
Accountants Pension Contribution Calculator
The personal payment has an estimated net cost of £8,250, but total contributions exceed the entered allowance by £3,000.
Lower-rate personal contribution with a modest employer payment
An employee contributes £3,000 personally while the employer contributes £2,000.
Input Summary
Personal contribution
£3,000
Employer contribution
£2,000
Other contributions
£5,000
Income tax rate
20%
Corporation tax rate
19%
Available annual allowance
£60,000
Calculation Breakdown
- 1New pension contribution£3,000 + £2,000£5,000
- 2Personal net cost£3,000 − (£3,000 × 20%)£2,400
- 3Employer net cost£2,000 − (£2,000 × 19%)£1,620
- 4Allowance remaining£60,000 − (£5,000 + £5,000)£50,000
Result Summary
Allowance remaining
£50,000
Accountants Pension Contribution Calculator
The £5,000 planned contribution has an estimated combined net cost of £4,020 and leaves £50,000 of the entered allowance.
How to Read Your Results
New pension contribution is the total of planned personal and employer payments.
Combined net cost is an estimate, not the amount paid into the pension.
Remaining annual allowance compares all entered pension contributions with the allowance figure supplied.
An annual allowance excess flags a potential issue for further review; it is not a tax-charge calculation.
Compare personal and employer net costs separately when evaluating the funding mix.
Assumptions & Important Notes
- Examples use simplified tax-rate estimates and UK pound sterling.
- The annual allowance is treated as an amount already adjusted for the individual's circumstances.
- Employer contributions are assumed to qualify for corporation tax deduction at the rate entered.
- No National Insurance or salary-sacrifice effects are included.
Related Examples
Frequently Asked Questions
Can I use the examples for a limited company director?
Yes, the employer contribution examples can illustrate company pension funding, but deductibility and allowance availability depend on the specific circumstances.
Why can a contribution be within the gross funding budget but exceed the allowance?
The allowance comparison includes other pension input already made during the tax year.
Are the example tax savings guaranteed?
No. They are estimates based on the tax rates entered and the assumptions used by the calculator.
Can I enter zero for either personal or employer contributions?
Yes. The calculator can model personal-only, employer-only, or mixed contributions.
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