You can pay as much as you like into your pot, but there are limits to how much tax relief you can receive. If you’re under 75, you’re eligible to pay in up to 100% of your UK taxable earnings or £3,600 gross (whichever is higher) and receive tax relief on your contributions. The value of the tax relief depends on your individual circumstances.
The annual allowance is the maximum you can pay in to all of your pension plans combined before a tax charge applies. For 2019/2020 tax year the annual allowance is £40,000.
The maximum contribution could be in the form of regular payments, one-off lump sum or a combination of both. The limit includes the contributions paid into all of your pensions (if you have more than one), includes your personal contributions, tax relief and any contributions that are paid by your employer.
You also need to consider the lifetime allowance rules where there is also a total amount of all your pension savings that can be built up over your entire working life without triggering a tax charge. The lifetime allowance for the 2019/2020 tax year is £1,055,000 (£1.055 million). Some people may have registered for tax protection with HM Revenue & Customs in the past; but otherwise, you may be charged if you go over this limit. If you think this may apply to you, you should obtain financial advice.