Why inflation hits GP pensions harder than hospital doctors’ 

14th August 2022 by Max Spurgeon, Legal and Medical

Why inflation hits GP pensions harder than hospital doctors’ 

Although it is more likely to impact GPs, hospital doctors may face similar problems if not now, certainly in the future.

Most medics are aware that the annual allowance is not based on your physical contribution to the NHS pension scheme, it is the growth in the pension that is one of the key factors determining your annual allowance each year. Another major influence is inflation, and never has that been more meaningful than in the current environment where the Bank of England are forecasting inflation of 10%.

The key month for inflation as far as the NHS pension scheme is concerned is September. The problem lies in that the HMRC and the NHS pension scheme use September in different tax years. The intention is that the annual allowance figure is used to tax growth after allowing for inflation. The method used for this calculation is causing inflation to generate ‘growth’ figures, consequently causing a potential tax liability.

Why does this impact GPs’ pensions harder than hospital doctors’?

Read more

No credit card details needed – it takes two minutes.

Join free trial

Login

Already a member? Login to view this content.

Login

More advice for starting out with GP locum accounts

"I regret not having joined earlier!!!"

Dr Maria Tome, GP

See the full list of features within our NASGP membership plans

Membership