Excess pension contributions

Q:I am a high-earning 54-year-old GP partner in an NHS PMS practice. I understand that to decide whether extra tax is payable there are three steps: 1, calculate the annual pension entitlement at the start of the year; 2, revalue the annual pension entitlement at the start of the year adding in the consumer prices index (CPI) increase; and 3, calculate the annual pension entitlement at the end of the year. The trouble is that there are different interpretations of how these figures are obtained. For example, the BMA suggests considerable extra taxation will occur for most high-earning GPs, whereas the NHS Pensions and HMRC websites suggest otherwise. Various financial advisers also come up with different conclusions. It seems to me that an annual rise in pension of more than £2,600 would trigger extra taxation. Does this take into consideration, however, the CPI increase? Please can you help us with some definitive advice?

YOU NEED TO SUBSCRIBE TO VIEW THIS ARTICLE

Already subscribed? Log in here

Please enter your details

Forgotten Password?

Forgotten password?

Having trouble signing in?

Contact our online support team at support@medeconomics.co.uk

[DAYS_LEFT] days left of your Medeconomics free trial

Subscribe now

Your free trial has expired

Subscribe now to access Medeconomics

"I did not have to think twice about subscribing to Medeconomics... I find this website the only place I can find an up to date and accurate database of fees"

Pratice Manager, Canterbury