GPs should ‘assume excess AA growth’, specialist IFA advises

3rd March 2023 by NASGP

GPs should ‘assume excess AA growth’, specialist IFA advises

GP locums should ‘assume excess annual allowance growth’ within their NHS pension scheme, a specialist IFA has advised NASGP members.

GPs will be expected to report excess growth to the HMRC and pay the tax charges resulting.

“[One] option is to assume you have excess AA growth and apply for Scheme Pays for £1, ticking the box that confirms this figure is an estimate and wait and hope it’s resolved later,” Kirsty McGaun wrote.

“Or, if you are not comfortable with either of the above and have some concerns, you may prefer option three and have an expert cast their eye over your figures.”

She advises GPs to use the NHS Ready Reckoner to give NHS pension scheme members an estimated breakdown of the total annual cost of scheme membership and estimate how much their NHS pension is projected to increase.

The BMA has further information about ‘tapered AA’, which the Reckoner assesses for.

McGaun is an Independent Financial Advisor (IFA) at Legal & Medical with over 25 years’ experience in financial services advising doctors and dentists.

Dr Richard Fieldhouse, NASGP chair, says: “There really cannot be any other work benefit scheme that would make even the most ardent atheist question whether they may have lived a previous life for which they are now being punished.

“Often the simplest advice is the best advice, so if you think you are at these tax charges due to excess growth, then you really cannot go wrong by speaking to an accountant and a specialist IFA to make sure you’re not going to receive a nasty surprise from the taxman.”

NASGP partners with specialist medical accountants Honey Barrett and specialist financial planners Legal & Medical who both have expertise working with GP locums.

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