Tax  

NHS to extend tax policy to GPs and dentists

“Planning is virtually impossible with the current tapered annual allowance process and calculation and the whole process of testing tax relievable savings needs to be reconsidered.”

Rachael Hall, head of medical services at Sandringham Medical Financial Planning, agreed more needed to be done.

Ms Hall said: “As an interim measure, this news will be warmly received by many doctors who can now return to work, opt back into the pension scheme and receive the benefit of full pension accrual without worrying about incurring large tax liabilities, which would later accumulate as a debt throughout their working careers. 

“Whilst I am pleased that this scheme will be available for all active clinicians and practitioners, including nurses and AHPs, it’s a shame that non-clinical roles have been disregarded, which is divisive, and I would urge the government to reconsider its position.

“Yet again, the government are kicking the can down the road and we need to see some robust actions implemented immediately, which would be more effective if they simply ended the tapering of the annual allowance.”

Ricky Chan, director and chartered financial planner at IFS Wealth & Pensions, said: "It does appear that GPs, dentists and non-clinical staff are not covered by the NHS employer paying for their pension tax bill.

"Hence this creates some complications for advisers and clients alike as there could be some misunderstanding, leading to poor advice or decisions made.

"This is clearly not sustainable as a long-term solution nor is it fair to the those who are ineligible. Although qualifying clinicians have the special treatment, it means that everyone else with high income would still benefit from seeking financial advice in relation to their tapered annual allowance."

amy.austin@ft.com

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