Action on 2019/20 pension tax impacts
November 22, 2019
NHS England has announced the action to be taken on 2019/20 pension tax impacts:
https://www.england.nhs.uk/pensions/
Responding to the announcement, Andrew Pow, executive board member of the Association of Independent Specialist Medical Accountants (AISMA), said:
“This announcement may go some way to persuading NHS doctors to work the shifts needed to meet demand over the winter. However, it is important that doctors understand that the proposals relate only to their 2019/20 tax payments. Those with large annual allowance tax charges for 2018/19 will still need to pay these in January 2020.
“It is uncertain if the payment of the 2019/20 tax on retirement may lead to a benefit in kind income tax charge. While positive news at first glance, the announcement contains significant uncertainties, including the potential for some form of down the line tax charge, which may not lead to the change in behaviour that is intended.
“Doctors who have already opted out of the NHS Pension Scheme to avoid the annual allowance tax charges should talk to a specialist financial adviser as soon as possible to consider the pros and cons of re-joining the scheme.”
Read how GPonline.com reported the announcement:
BMA demands legal guarantee over pension tax offer as accountants flag ‘uncertainties’