Doctors have now received their annual pensions savings statements for the tax year 2011/2012. You could be shocked to find you have saved substantially more than the agreed cap of £50,000. Breaching this new annual allowance limit without any available ‘carry forward’ from the previous three years could mean a very large tax bill. We have been helping one new client who was unprepared for the rate change resulting in an extra £50,000 tax bill. One of the biggest challenges we face is doctors who come to us for advice too late.

The main problem here is that the statement has arrived long after the 11/12 tax year has closed. You may have made personal pension contributions in that year that cannot now be refunded. There is little that can be done retrospectively.

Make sure your finances are in order well ahead of time; the annual allowance rate is being reduced further to just £40,000 in April 2014.