The pension ‘lifetime allowance’ (LTA) will drop to £1.25million on 6 April. Many doctors do not realise they could be affected because of the way in which HMRC values their NHS pension.

This month could be your last chance to check the amount you have invested in your pension funds and get your paperwork in order before the approaching deadline. This is particularly important if you have saved into any personal pension scheme or SIPP and not reviewed your position in the last 6 to 12 months. Your existing pension protection may now be invalid and your lump sum at risk.

It takes time to gather the information needed to check your financial position. If you breach the LTA, you will be looking at a harsh tax penalty which could run into hundreds of thousands of pounds. We are trying to help people now while they still have options available. Unfortunately, there is little we can do after the event. Please check your position without delay.

Three simple things you should do now:

1. Check the value of your NHS pension with your trust pension officer or the NHS pensions agency (NB, there could be delays in getting the answer from the pension agency).

2. Don’t forget to check the value of any private pension or SIPP and whether you are making any ongoing contributions (NB, remember that personal pension contributions usually invalidate pension protections).

3. Review any current pension protection schemes in place. Are you sure you know which type you have in place? Are you comfortable it is the right one? When was the last time you checked it was still valid?

Too busy to deal with this? Don’t bury your head in the sand! We can help you. Call one of our expert advisers at Cavendish Medical on 020 7636 7006.