The NHS has announced that that clinicians who exceed their NHS pension annual allowance in this financial year are not left out of pocket.
It will cover all pension saving in the NHS schemes in 2019/20 (but not annual allowance tax charges falling due on pension saving outside the NHS schemes) for doctors, nurses, AHPs and other clinicians in active clinical roles who are members of the NHS pension schemes.
Clinicians who as a result of reaching their annual pension allowance are subsequently notified of a tax liability in respect of this year (2019/20) will be able to choose ‘Scheme Pays’ on their pension form, meaning that they don’t have to worry about paying the fee out of their own pocket; AND – the NHS will make a contractually binding commitment to pay them a corresponding amount on retirement, ensuring that they are fully compensated for the effect of the Scheme Pays deduction.
Clinicians are therefore now immediately able to take on additional shifts or sessions without worrying about an annual allowance charge on their pension.
For more information contact our Healthcare team.