The annual allowance of £50,000 is the maximum amount of pension savings you can receive tax relief on each year. This includes your NHS pension and any other pension arrangements you have (not including state pension). If the growth in your pension savings exceeds the annual limit you will have to pay a tax charge on the excess. Unused annual allowances from the previous three years can be carried forward to the current year. From 2014/15 the annual limit will decrease to £40,000. If you are affected by the limit, or have made a request, you should receive pensions savings statements for 2011/12 and 2012/13 from the NHS by 6 October 2013. Click here for an example statement which includes further information. Once you have received the statements you will need to check whether you have breached the annual allowance limit, bearing in mind any other pension savings outside the NHS scheme. If you have exceeded the allowance you will need to declare and pay any tax due for 2011/12 onwards by the required deadlines. As dental specialist accountants we have experience of the dental industry and on NHS matters making us well placed to advise on this. If you have any questions or would like to discuss this further please get in touch.
|