From April 2016, high-achieving surgeons will see the size of their annual allowance – the amount they can pay annually into their pension and still qualify for tax relief – cut from £40,000 down to a possible £10,000.

The new ‘tapered’ annual allowance will be reduced by £1 for every £2 of income for individuals earning over £150,000 with a maximum reduction of £30,000 for those earning £210,000 or more.

In advance of this new limit, the government has introduced transitional rules to align pension input periods with the tax year by April 2016 and to protect savings already made from retrospective tax charges.

The 2015-16 tax year will be split into two mini tax years for the purpose of the annual allowance, the pre-alignment tax year and the post-alignment tax year – referred to as ‘mini tax years’ by HMRC.

You will need a good record of your NHS membership for the last three tax years and access to all of your pay slips in order to be prepared.

Warning – small increases in pensionable pay from April 2016 could result in large ongoing income tax bills. As this area is particularly complex you should seek expert help to check your position well before the April deadline. Call one of our advisers on 0207 636 7006.