Budget will cost independent practitioners ‘thousands’
THE BUDGET.
Independent practitioners will be paying thousands of pounds more to the Treasury in the wake of today’s Budget.
A spokesman for the Association of Independent Specialist Medical Accountants (AISMA) told Independent Practitioner Today: ‘In a widely predicted move, the lifetime allowance limit for pensions has been frozen at £1,073,100 for the tax years up to and including 2025-26.
‘This would affect anyone expecting to draw an NHS pension of over £46,656 and with this limit now being frozen, more people will be caught by this tax charge. The effect is an extra £21,000 tax charge on the pension pot at retirement.’
He added: ‘With personal tax allowances frozen, doctors who are higher-rate taxpayers should also expect to pay extra tax. For any doctor earning over £55,000 this will equate to around £100 a month more tax by 2026.’