Applications for ‘Scheme Pays’ to settle the tax charge must be made by 31 March 2022.

The annual allowance limits the amount of tax-free pension savings per year. The standard allowance is £40,000 but this then tapers on a sliding scale depending on earnings.

The government agreed to pay the tax charge of clinicians in England and Wales who breached the annual allowance for the tax year of 2019/20 – but only if those affected apply for ‘Scheme Pays’ to claim the compensation.

The Scheme Pays deadline normally falls on 31 July each year but was extended to March 2022 to support those dealing with the impact of the Covid pandemic.

Remember also that the compensation form must be counter-signed by the hospital trust.

The rules surrounding the NHS pension and taxation will change again this year. The much talked about McCloud judgement could mean that the numbers for the last few years need to be changed retrospectively and it would be wise to start with accurate figures.

The ‘McCloud’ judgement ruled that moving some doctors to the 2015 NHS Pension Scheme was discriminatory and that compensation would be offered to those affected.

For more information or to check your own position, please call us on 020 7636 7006.