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Doctors pension tax charge?

Doctors pension tax charge

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Amending SATR 2018 - General practice Dr who gets share of profits from medical p'ship, £120k, locum fees, £30k, and superann per p'ship accountant paid of £35k. Pension inputs per NHS £70k.  Threshold income above £110k and adjusted income £185k (£120k + £30k + £70k less superann paid) so taper applies.  Software asks for 'employer contributions' so for this purpose that would be £35k (£70k PIs - £35k).  Would appreciate if someone would confirm the approach is correct, or otherwise? 

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By Accountant A
13th Jun 2019 10:02

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By Tax Dragon
13th Jun 2019 10:09

Seriously, why anonymous? I had almost exactly the same question for a client here.

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By Anonymous.
13th Jun 2019 11:03


Dr who gets share of profits

Make sure you claim AIA on the Tardis.

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13th Jun 2019 12:17

when assessing threshold income (using the member's tax computations, which is more accurate, as global income is included) you do need to deduct the gross member contribution (whether under relief at source method or net pay scheme) from total income, to arrive at the threshold income. Then, when calculating the adjusted income, you add the pension input amount (growth) and then deduct the gross member contributions, to arrive at the correct 'adjusted income' value; note also, when undertaking carry forward calculations, start from 2010/11 when applying pension input values and not just last three years

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By John Buick
13th Jun 2019 12:22

Thanks for reply DSG.

Posted this in haste and now found my usual login and see that you kindly answered a similar query I had previously which pretty much confirms. Thanks again!

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