Up to half of remedial pension savings statements may be incorrect
Specialist medical accountants estimate up to 50% of doctors’ remedial pension savings statements currently being rolled out by NHS Pensions could include incorrect data, based on the statements they have seen so far.
The figure comes from a membership survey by the Association of Independent Specialist Medical Accountants (AISMA) after errors were identified in the first batch of statements delivered.
These statements are an essential tool for NHS Pension Scheme members and their professional advisers to re-calculate if tax is due to be paid or refunded.
A re-calculation is required following the roll-back of pension records as a result of the McCloud age discrimination ruling affecting public service pension schemes.
Almost 90% of AISMA members responding to the survey identified errors on the statements they had seen.
Errors include overstated pension growth figures and discrepancies between doctors’ Remediable Pensions Savings Statements (RPSSs) and HM Revenue and Customs records on annual allowance tax charges settled by NHS Pensions on behalf of scheme members.
Major discrepancies
AISMA board member Andy Pow said: ‘Many members of the NHS Pension Scheme haven’t yet received their statements and those who have are struggling to make sense of the numbers.
‘We are concerned that the major discrepancies already identified in pension growth figures will lead doctors and other healthcare professionals to lose trust in the process.’
Mr Pow said doctors were also being left in the dark about how they should deal with their 2023-24 tax disclosures, which are required imminently.
He told Independent Practitioner Today: ‘Consultants working in private practice who are members of the NHS Pension Scheme are more likely to have received their remedial pension savings statements than other members of the scheme.
‘However, that won’t be the case for the many consultants whose statements will need to be manually calculated by NHS Pensions and therefore take longer to arrive.’
AISMA’s advice is to stay in touch with your specialist medical accountant, noting there is a compensation scheme in place to cover professional fees for carrying out the complex tax calculations required.
Extreme pressure
AISMA chairman Deborah Wood said: ‘Doctors and their accountants were already under extreme pressure in terms of meeting the 31 January deadline to re-submit eight years’ worth of tax information to HMRC as part of the ‘McCloud remedy’ process.
‘AISMA members are concerned about the need to review all Remedial Pension Savings Statements and arrange for the correction of errors before the correct tax calculations can be made.
‘The sheer volume of processing required in the short period of time available means it will be virtually impossible for the 31 January deadline to be met.’
AISMA has joined other accountancy and tax organisations, pension advisers and the BMA in calling for an extension to the first deadline of 31 January 2025.
Ms Wood said: ‘Logically, it should be aligned with retired members to 31 January 2027. Practically speaking, however, this may then impact on 2024-25 tax submissions. To avoid kicking the can further down the road, we accept that 30 September 2026 may be a compromise position.’