Intended for healthcare professionals


Pension reprieve: will the new scheme work for you?

BMJ 2019; 367 doi: (Published 26 November 2019) Cite this as: BMJ 2019;367:l6698
  1. Abi Rimmer
  1. The BMJ

Earlier this month NHS England announced a temporary scheme to allow doctors to work extra hours over winter, with the promise that the NHS would reimburse them for any additional tax they accrued on their pension as a result.1

Under the scheme, hospital doctors and GPs who reach the annual allowance limit in 2019-20 can choose a “scheme pays” option.

Mark Skellum, a partner at chartered accountants Ballards LLP, explains what the scheme could mean for doctors.

What is the “scheme pays” option?

Scheme pays is a way to defer an annual allowance liability until you draw your pension. Rather than having to pay the tax through your tax return, the scheme pays option means that the NHS pension scheme settles the liability …

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