Confused by Type-2 Self-Assessment forms?

With the deadline for completion of Type 2 certificates by the end of February, we thought we’d cover some of the questions we’ve been asked recently.

Why do we have to fill in a form?

The intention of the certificate is to check that the right tier rate has been applied and to provide a mechanism for calculating balances due to be paid or repaid. The certificate is then used to update your pension record

What happens if we just ignore it?

If you don’t complete and submit a form, your pension record won’t get updated properly – so you’ll be paying for benefits you’ll never receive.

How do I know if I’ve done forms in the past?

Often the practice manager will complete forms on behalf of the salaried doctors (this can be quite dangerous if they don’t know the full picture), and you may not even remember being asked to sign a form.

If you ask for a Total Rewards Statement you will be able to see your pensionable income and if there are gaps, then your certificate hasn’t gone through the system (but remember that 2017-18 won’t show up until late summer this year).

I’m sure I’ve done certificates before but it’s not showing on my pension record.

If you’ve done them on time in the past but they are not showing, then it’s best to do them again and resubmit them (and follow up to make sure they do go through).

What is this amnesty I’m reading about?

It’s basically their way of saying if you’ve not done it before – or they’ve lost the forms – do them now and get your records updated.
Unfortunately, they give a deadline of 28th February which doesn’t give much time to hunt out historic documents.

What is pensionable income?

For a salaried doctor it will be the figure shown on your payslip as pensionable income (as opposed to taxable or NIC’able income). If it doesn’t show on your payslip (and it does not show on a P60 usually), then you will need to contact your payroll provider.

NB GP registrar salary is an officer post, and is not pensioned through this certificate. For a locum GP it will be 90% of the amount invoiced and shown on Form B’s, excluding the extra received as the employer contributions.

For GP SOLO work it will be the gross amount shown on the certificate with no deduction for expenses.

Do locums have to complete Type-2 assessment forms?

‘Pure’ locums don’t have to do a Type 2 certificate, but if you have any salaried work at all, then you do need to do a Type 2 certificate and include your locum work and any other pensionable practitioner work in order to arrive at the correct tier rate.

What if locum Form Bs don’t match what I’ve invoiced?

If it’s just timing, use the Form Bs for the months in the fiscal year – so April 17 to March 18.

If you’ve missed putting some work on your Form Bs, then do not include that work as pensionable income and either return the employer contributions to the practice who paid them – or renegotiate your fee from them to include what you actually received. You are only acting as a collection point for the employer contributions – it is not your money to keep personally.

What if I have had gaps in service?

At the time of writing, the annualisation calculator has still not yet been issued [Update]. This should clarify what a ‘gap’ actually is, so you can calculate what your deemed income would be for the purposes of calculating your tier rate.

If you do have gaps, then it might be worth holding off a bit until the new guidance is issued (but they haven’t moved the 28th February deadline).

You do need to take these forms seriously – get help if you are struggling with them.

This article first appeared in The Sessional GP magazine.

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