NHS Pension Warning for Practitioners!
NHS Pension Agency notifications to Practitioners for 2011/12 regarding breaches in Annual Allowance for 2011/12 are absolute tosh!
The NHSPA have been issuing Annual Allowance statements to pension scheme members over the past 6-8 weeks informing them that they have breached the limit for 2011/12. Where a breach of the Annual Allowance has occurred members have until 31 December 2013 to notify NHSPA whether or not they wish the pension scheme to pay the resulting tax liability on their behalf. If they do not notify NHSPA they will have to pay the taxation themselves.
Working with concerned pension scheme members we are discovering a high volume of errors in Annual Allowance statements and we are also aware of cases where members should have been notified of an 2011/12 breech but they have had no correspondence to that effect and are thus oblivious to missing the rapidly approaching deadline.
Specialist medical accountants should certainly be aware of the issue and be advising practitioners accordingly as there could be serious financial consequences!
One of our GP clients had been incorrectly told they owed £17,000 in tax. When we did the numbers he did not have any liability, so without the professional advice this doctor could have written a cheque out for £17,000 and sent it to HMRC. Now he doesn't have to pay a penny!
We are happy to deal with enquiries if you wish us to explain this problem in further detail. 0191 653 1022
(Please note decisions impacting upon practitioners pensions must be given by a regulated financial adviser who is authorised and regulated by the Financial Conduct Authority, we would strongly suggest someone who understands the complexities of the NHS pension scheme - refer to Kevin Walker's profile which highlights the calibre of adviser who can assist practitioners with this issue). If in any doubt, get a second opinion.