Intended for healthcare professionals


Doctors to get flexibility on pension contributions from next year

BMJ 2019; 366 doi: (Published 06 August 2019) Cite this as: BMJ 2019;366:l5053
  1. Elisabeth Mahase
  1. The BMJ

Doctors in England and Wales will be able to control how much they pay into their pensions when the new financial year starts next April, to avoid punitive tax charges, under new government proposals.

The new approach, which will be put out for consultation shortly, replaces the 50:50 proposal announced in June,1 which suggested that doctors could halve their pension contributions to avoid tax charges. This was criticised by the BMA, which said that it would just leave doctors with smaller pensions.

The same problem could arise in the new proposal, however, because although doctors will be able to reduce the amount they pay into their pension, the employer contribution will also reduce, meaning their pensions will grow at a slower rate. This would mean that if a doctor cut their pension payment to …

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