How we saved an Epsom consultant £16,400 on pension annual allowance
Client R is an Epsom-based hospital consultant with NHS pensionable income plus private practice income, total income around £182,000. The tapered annual allowance combined with NHS pension growth had created annual allowance charges the previous accountant had been settling from the bank account, without using carry-forward.
We reviewed three open years of NHS Pension Savings Statements, calculated the correct tapered annual allowance each year, identified unused allowance carried forward from earlier years, and used it to reduce the chargeable amounts. Where charges remained, we made Scheme Pays elections so the NHS pension settles them rather than the bank account.