We’ve spoken to our Medical Accountancy Director Nipun Gupta to understand the pension changes and issues currently affecting those in the sector.
From pension payments, deductions, annual allowances, lifetime allowances, pension certificates, Primary Care Support England (PCSE’s) communication and so on, we know lots of things have been impacting you and your finances.
Here are a few key facts:
Annual allowances and charges
You need to know the annual growth in your pension fund and if you are liable to pay annual allowance charges.
It is more likely that there will be a variation in your pensionable income for the last few years and you might be hit by a tapered annual allowance for the 2016/17 tax year if your adjusted income is more than £150,000 and threshold income is more than £110,000.
Estimated pensionable income
You will need to ensure that you or your practice manager provide these figures to PACE every year through a GP type 1 form. This will also apply to any new joining partner and those GPs who are salaried over the year.
Lifetime allowances
This has now been increased to £1.03 million which represents a £30,000 in the last 12 months.
Incorrect deductions
Working with experts will ensure you do not suffer from incorrect deductions. This not only puts practices under cash flow restrictions but can also create tax issues for GPs who are looking to claim tax relief on pensions.
Primary Care Support England (PCSE)
For some time now, PCSE’s have been unhelpful and difficult to communicate, BMA has urged the introduction of a more robust system.
To make sure you are staying on top of the above issues, we recommend getting your records from NHS Pensions and checking the growth and yearly pensionable income year-on-year. You can find your statement by logging into your account at: https://www.totalrewardstatements.nhs.uk/
Key deadlines:
31.01.2019 – Personal Tax Returns 17/18
31.01.2019 – Partnership Tax Return 17/18
28.02.2019 – GP Pension Certificates 17/18 (Partners)
28.02.2019 – GP Type 2 Pension Certificates (salaried GP’s) 17/18
28.02.2019 – GP type 1 – GP Superannuable income for 19/20 (Partners and salaried GP)
If you have any questions or concerns about the issues raised above, please contact our medical team on 01438 727141.
