When the Chancellor announced that the Lifetime Allowance (LTA) was to be abolished on 5 April 20241, many medics were quick to celebrate the removal of a rule that had caused many a pensions headache, as we have outlined previously. However, the elimination of the Lifetime Allowance has caused far-reaching implications for retirees and their beneficiaries. Although touted as a measure to simplify pension rules, eradicating LTA carries downsides leaving other limits in place concerning the tax-free lump sum and the amount payable on death from your pensions. The removal of one allowance has g ..read more

Are you a medical professional owed an overpaid tax rebate? Any doctor, dentist or medic affected by the McCloud Remedy may have potentially overpaid annual allowance and lifetime allowance charges. Over 1 million members of the NHS pension scheme will be affected by the Mcloud Remedy. It’s not often I praise the HMRC, but this is one of those rare occasions. The HMRC have launched a calculator to calculate incorrect tax charges if you were affected by the McCloud Remedy. Could you be affected by the McCloud Remedy? The McCloud Remedy will affect anyone with NHS pension scheme service on or b ..read more

Back in 2022, the Department of Health and Social Care proposed changes to the contribution levels for the NHS pension scheme. The second and final phase of these changes is due to go ahead on the 1st of April 2024. In the table below, you can check your new contribution position. Will your contribution levels remain the same, increase or even fall?   NHS pension scheme contribution table Pensionable Salary Range Contribution rates from 01 April, based on actual annual pensionable pay up to £13,259 5.2% £13,260 to £26,831 6.5% £26,832 to £32,691 8.3% £32,692 to £49,078 ..read more

It was not an exciting, surprise-packed budget. However, the budget did bring some good news for many while leaving other areas unmentioned. My top seven ‘headlines’ from this year’s budget are: 1. National Insurance Contributions Class 1 employee national insurance contributions (NICs) are to be cut from 10% to 8% from 6 April 2024. There is a corresponding cut from 8% to 6% in class 4 NICs for the self-employed. If you are employed and earn between £75,000- £100,000 you will be £75 p.a. better off after this change. If you want to check your own position, why not try The Money Saving Expert ..read more

The NHS has introduced the Cost Claim Back Scheme to provide relief for members directly impacted by the McCloud remedy. This scheme applies to anyone who has or is considering professional advice from accountancy firms or financial advisors regarding changes to the NHS pension scheme, allowing eligible individuals to recover direct financial losses or tax losses incurred due to the McCloud Remedy. What can you claim for? There are two levels of claims available under this scheme… Accountancy Advice: You can claim an allowance of up to £1000 inclusive of VAT per piece of advice. This covers c ..read more

It’s confirmed! Over 1 million members, deferred members and pensioners of the NHS pension scheme are affected by the McCloud Remedy. This includes anyone who was in the NHS pension scheme on or before 31st March 2012, including anyone who would have been eligible to rejoin as they were within 5 years of leaving. What is a Contingent Decision? You’ll hear the phrase ‘contingent decision’ a great deal in the coming months – if you haven’t already! A contingent decision is a decision you made or did not make because of actual or perceived implications of the 2015 pension scheme reforms. Es ..read more

We are working on a series of articles to keep you informed about the latest news regarding the NHS pension scheme. Fortunately, this month’s main headline is positive news related to tax – a rare but beautiful thing! Two significant changes will impact the amount of tax you may need to pay concerning your NHS pension scheme. 1.  Negative growth Navigating the intricacies of the NHS pension scheme (NHSPS) involves understanding the nuances of its various sections, namely the 1995, 2008, and 2015 components. One recurring concern that resonates with many NHSPS members is the annual allowan ..read more

We’re discussing the tax year-end earlier than usual as there’s a lot to cover before April 5th. With the budget’s taxation changes and ongoing modifications to the NHS pension scheme – for anyone even remotely interested in their finances, this year is busy. Before we start…Before we begin, if you haven’t filed your self-assessment yet and it’s before the 31st of January, you’re running late. So, please stop reading for now and get on with that job first! Otherwise, keep reading our 8 areas to check and take action before the deadline. 1. Use your ISA allowance Every adult has an ISA allowan ..read more

As a mortgage adviser, I’m still baffled as to why certain medical professionals are incurring the same problem when trying to arrange a mortgage. Recently, a young couple, both successful junior doctors, were trying to purchase their first home together. They had saved up a healthy deposit and had no previous issues with credit. However, through no fault of their own, they found themselves with two failed mortgage applications, an estate agent threatening to pull their property unless they paid a £5,000 non-refundable deposit, and their previous financial adviser had seemingly vanished into t ..read more

As doctors and medical professionals, you see accidents and illnesses daily. You also experience how this can affect your patients’ work and home life. But have you considered what would happen if you were off sick due to an illness or accident? You are probably aware that when working for the NHS you are entitled to sick pay, but did you know this varies with your occupation? How NHS sick pay can vary If you are in hospital service or have started as a salaried GP, the amount of sick pay you will receive depends on how many years of service you have completed. During your first year of serv ..read more