GPonline.com: AISMA comments on proposed pension flexibilities
August 8, 2019
AISMA accountant Andrew Pow tells GPonline.com that the government’s plans to allow doctors greater flexibility around contributions to their pension will not solve the problem of GPs reducing their working hours to avoid punitive taxes. Read the article in full on the GPonline.com website.
New consultation: Pensions flexibility for senior doctors
August 7, 2019
Responding to today’s announcement from the DHSC, Andrew Pow, a board member of the Association of Independent Specialist Medical Accountants, and partner at Mazars UK, said:
“We welcome the government’s acknowledgement that the 50:50 proposal will not prevent senior doctors from being severely impacted by the tapered pension tax allowance.
“AISMA has long-argued for a review of pension tax rules since it was clear from the outset that the 2016 changes would discourage senior doctors from working extra shifts in what was an already stretched health service.”
Read the DHSC announcement
GPonline.com – tips on avoiding fraud
July 22, 2019
Two cases of insider fraud, which had a severe impact on the practice in question, have been reported recently. AISMA members put their heads together to provide a list of simple tips, published by GPonline.com, that GP partners can use to help avoid fraud in their practices. Read the full article.
GPonline.com: more on the NHS pension crisis
July 11, 2019
AISMA board member Andrew Pow comments in this article published by GPonline.com, warning that the NSH faces winter chaos as the pension tax crisis continues. Reduced working hours and early retirement to avoid tax charges means the NHS will struggle to cope. Read the article in full.
Pulse: What PCNs need to know about VAT
July 2, 2019
AISMA accountants Lizzy Lloyd and Rob Skilton, writing in Pulse, explain VAT implications for Primary Care Networks. Covering the supply of services to PCN members, and the implications of sharing a workforce, the article touches on many of the considerations practices need to consider as they start working collaboratively. Click here to read the full article.
Pension discrimination test cases
July 1, 2019
Last week the Supreme Court rejected a government appeal against a High Court ruling which found 2015 pension reforms discriminated on the grounds of age, race and equal pay. Today, GPonline.com reports that GPs have begun age discrimination claims against the government in a series of test claims backed by the BMA. Read the article in full, including comments from AISMA board member Andrew Pow.
What to look out for before signing a PCN agreement
May 28, 2019
“Practices should ‘think twice’ before signing PCN contracts, warn accountants”
April 26, 2019
Response to BMA ‘perfect pensions storm’ letter to the Chancellor of the Exchequer
April 25, 2019
The Association wrote to the Treasury in 2016 to highlight the significant issues surrounding the recruitment and retention of senior health professionals within the NHS, driven in part by the changes to the taxation of pension savings introduced in the 2015 Summer Budget.
Since then, AISMA has written a series of letters to the Secretary of State for Health and Social Care and the Chancellor of the Exchequer reiterating these concerns.
AISMA’s latest letter to the Chancellor, sent last week, asked the government to urgently review the pensions savings regime with reference to the Annual Allowance, and set out three suggestions:
1 – Changes could take the form of raising the Annual Allowance threshold to a position where it removes the majority of key NHS workers from this charge. This can be justified on the basis that pension growth for higher earners is now effectively capped by the reduced Lifetime Allowance. The Lifetime Allowance rules lead to a tax charge where benefits exceed the maximum allowed. This allowance has reduced over the years and therefore automatically caps tax relief on larger pensions. At the very least the tapering rules need an overhaul as they are causing “cliff edges” where additional tax is higher than earnings
2 – The Government could consider further changes to the NHS pension scheme to allow qualified GPs and hospital consultants to cap their pensionable earnings to give them back control over the pension growth they have in any one year. This is more difficult to achieve without a significant overhaul of the pension scheme. Simply allowing the option to say reduce contributions and benefits to 50% as proposed in the latest GP contract will in our view not have the desired impact. Changes need to be more radical than this.
3 – Allow the measurement of the Annual Allowance to be linked directly to combined employee and employer contributions, rather than on the benefit accrual method that HMRC adopt, on the basis that Public Sector schemes now have to be self-funding. This would reduce the burden of administration on the NHS pension scheme and allow tax payers to complete tax returns more accurately. This is the simplest option which would achieve quick results and allows professionals to better control their growth.
State-backed indemnity ‘won’t bring major GP pay rise’ in 2019/20
March 27, 2019