Surgeons ‘delighted’ over tax trap action

Royal College of Surgeons of England president Prof Derek Alderson has expressed delight that the Government has listened to concerns on the ‘pensions’ tax trap’ issue. 

Prof Derek Alderson

He said: ‘It has been a genuine worry for senior surgeons and doctors. Our latest survey showed 61% of consultant surgeons had been advised to refrain from taking on additional work, because it could trigger a large and unpredictable tax bill. 

‘The changes announced in today’s Budget should allow the vast majority of senior doctors and surgeons to work additional hours for the NHS. This could be particularly vital in the coming weeks and months.’

The Chancellor announced that the two tapered annual allowance thresholds will each be raised by £90,000. 

This means that, from 2020-21, the ‘threshold income’ will be £200,000, so individuals with income below this level will not be affected by the tapered annual allowance, and the annual allowance will only begin to taper down for individuals who also have an ‘adjusted income’ above £240,000.

The college said: ‘For those on the very highest incomes, the minimum level to which the annual allowance can taper down will reduce from £10,000 to £4,000 from April 2020. 

This reduction will only affect individuals with total income – including pension accrual – over £300,000. Proposals to offer greater pay in lieu of pensions for senior clinicians in the NHS Pension Scheme will not be taken forward.’

The Chancellor suggested that these measures meant 98% of consultants and 96% of GPs would be taken out of the taper altogether.

Coronavirus and retired doctors

Prof Alderson said if Coronavirus took hold, the NHS would need extra resources to deal with the outbreak and would need ‘everyone in the NHS to lend a hand, including those recently retired.’ 

The college welcomed the Chancellor’s commitment to provide whatever resources are needed to deal with this unprecedented challenge and said surgeons and surgical teams across the UK were ‘rolling up sleeves and ready to help deal with the Coronavirus, on top of their routine work’.

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