NHS Pensions are required to provide a Pension Savings Statement to all doctors who have deemed pension contributions greater than the annual allowance (£40,000). This statement must be issued by NHS Pension by 6th October following the end of the tax year.
It is the doctor’s responsibility to report any annual allowance tax charge on their Tax Returns. All pension contributions (NHS and private) must be included when calculating total pension contributions.
Remember from 6 April 2016, doctors who have an “adjusted income” over £150,000 will see their annual allowance “tapered” down to £10,000 (where income exceeds £210,000).
A tax charge doesn’t automatically arise because your contributions have exceeded the annual allowance as unused relief from the three tax years prior to 2016/17 may be carried forward to offset any annual allowance tax charge.
If you need any assistance with your Tax Return or would like a free no obligation appraisal of your tax affairs, please contact Andrew Fenton on 07775 503475 or email firstname.lastname@example.org.
Andrew is a Chartered Tax Adviser (and a former Inspector of Taxes!). Andrew regularly lectures at Hospitals and assists many consultants with their tax affairs and helps them save tax.