NHS doctor client has sent me 2 annual statements from NHS pension schemes. One is the 2015 scheme (call it A)and the other is the 1995/2008 scheme (B). The 16/17 pension input period for A shows an opening value of £16K and closing value of £39K. Scheme B shows opening value £81K and closing value £99K.
I have therefore calculated the total increase in value £41K, which exceeds the allowance of £40K for the year. This seems high, his P60 shows taxable gross £71K for 16/17.
Before I tell him he has £400 tax to pay as he has exceeded the maximum annual allowance, can any one confirm that I have done the right calculations? Namely- Increase in value of each pension, added together, then deduct annual allowance, tax due on excess at highest income tax rate?