Earlier this year high earners were lobbying for pension tax changes, namely hospital doctors and GPs – read more here.
From 2016/17 taxpayers with ‘adjusted income’ over £150,000 and ‘threshold income’ over £110,000 receive a tapered annual allowance. This taper potentially reduces the normal annual pension allowance from £40,000 down to a minimum of £10,000. Those caught by the taper may have to pay tax on additional contributions. If you are caught by the tapered pension tax and require further assistance, please contact us on 01295 477 250 alternatively you can email firstname.lastname@example.org.
The government have announced that it would consult on allowing senior NHS staff to select their level of pension accrual at the start of the year. Doing so will give them more pension capacity to take on additional work without breaching their annual allowance.
The Treasury has also agreed to reconsider the “taper”, which restricts pension tax relief, not just for NHS workers but across the public sector. Keep your eyes peeled for further details on how and if the tapered tax will affect the private sector.