Don’t pay your tax charge personally, doctors told

By Edie Bourne

Independent practitioners receiving personal pensions statements from the NHS Pensions Agency this month should strongly consider how they will settle any tax charges for 2019-20, according to specialist financial planners.

Cavendish Medical says this is because the Government has agreed to pay the tax charge of clinicians in England and Wales who breached the pensions savings limits known as the annual allowance – but only if those affected apply for ‘Scheme Pays’. 

When individuals elect to use Scheme Pays, the NHS Pension Scheme pays their annual allowance tax bill to HM Revenue and Customs on their behalf, with the member’s benefits in retirement being reduced accordingly.