There has been a lot of talk in the media recently about the pension contribution allowances, both annual and lifetime, and especially how they are adversely affecting certain professions such as the medical profession. As the annual allowance begins to be tapered off above earnings of £150,000 those in the health sector especially are facing the choice of either paying additional income tax bills on the overfunding, or having their NHS pension fund affected.
In a lot of cases, the additional income tax charges are coming as a surprise and shock to the individuals concerned. So much so that within the health sector, it is becoming increasingly concerning that doctors are refusing to work overtime on the grounds that the additional income is creating these penal tax charges.
Good news ( hopefully ) is however on the horizon. The government has recently confirmed that it will consult on proposals to offer senior clinicians a new pensions option. This would allow them to build their NHS pension more gradually over their career by making steadier contributions towards their pension, without facing regular and significant tax charges.
As news develops we will continue to update you on our news section.