As you may be aware, the government agreed to pay the annual allowance tax charges of clinicians for 2019/20 under a compensation scheme. If you are eligible for compensation, you must elect to use Scheme Pays to settle the tax charge.
While there is still time to apply for Scheme Pays – the deadline is 31 July this year – you must remember to include this detail on your 2019/20 tax return which must be submitted to HMRC by 31 January.
You should have also received your pension statement from NHS Pensions and be in receipt of the correct figures to include in your tax return. If not, you can submit an estimate which would potentially need to be amended by your accountant at a later date.
You will find the Scheme Pays application form here: https://www.nhsbsa.nhs.uk/member-hub/annual-allowance
Once confirmation has been received, you can download the Compensation Policy application form here: https://www.england.nhs.uk/pensions
Please contact us if you require any help with navigating through annual allowance issues.
