Additional NHS pension

Q: My wife will be 64 years old in the autumn. She is a locum GP and started work in the UK in 2006. She is likely to earn well over £100,000 this year before deducting expenses and NHS pension contributions. We are aware that with the new tax rules she can lose £1 for every £2 over the £100,000 income. She has not accumulated much of an NHS pension. Is it wise for her to buy additional pension (AP in the NHS Pension Scheme) to reduce her taxable income? If she buys AP, does she have to do this before 6 April 2012, the day the 2012/13 tax year starts?

by Kevin Quinn

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