As a busy doctor, you are unlikely to have time to check pay slips every month but you might be surprised to find that colleagues are seeking salary rebates after discovering they are on the wrong pay threshold of their NHS consultant contract.
We have recently worked with several new clients who are due to receive thousands of pounds in backdated pay after we checked their pay slips when they joined us. One consultant had been on the wrong pay level for over eight years leading to an arrears payment claim of £75,000.
As well as the substantial salary rebate, the consultant’s pension income in retirement will increase by more than £4K per year, plus the capital value of his NHS pension will be increased by £100K. He also saved £34,500 in tax liabilities by rectifying the mistake sooner rather than later.
Doctors’ pay scales are complex and mistakes can be easily missed by busy medical professionals getting on with the day job or financial advisers not well versed in NHS pay regulations.
Not only could you be missing out on your deserved income, you could also face grave consequences with your pension contributions. As we know, there are now harsh penalties for excess annual and lifetime pension savings. If you are on the wrong pay scale, your pension will be greater than projected and could result in substantial tax payments.
For a thorough check of your financial position, please contact us on 020 7636 7006.