GPs to face tax bills of up to £30,000

A quarter of partners could face a huge hike in their tax bill because of government changes to tax relief on pensions, according to a medical accountant.

Laurence Slavin: 'Any GP over 45 will have been paying into the scheme for more than 20 years' (Photograph: J Heath Lancy)
Laurence Slavin: 'Any GP over 45 will have been paying into the scheme for more than 20 years' (Photograph: J Heath Lancy)

Some GPs could be faced with tax bills as high as £30,000, according to Laurence Slavin, partner at medical accountants Ramsay Brown & Partners.

In October, the government announced the annual allowance for tax-privileged pension saving would be reduced from £255,000 to £50,000 per year from April.

The new rules apply to public and private pension scheme members and will hit those earning £100,000 or more.

In its written evidence from the UK health departments to the NHS Pay Review Body last month, the DoH admitted that 10,000 high-earning members of the NHS pensions scheme would be affected - 'primarily GPs, medical consultants and very senior managers'.

Mr Slavin estimated that 25% of principals would be hit.

Dr Andrew Dearden, BMA's pensions committee chairman, disagreed.

'It will affect a very small number of GPs. You'd need a number of factors coming into play to end up with a hefty tax bill,' he said.

These factors included high earnings, paying into the NHS pension scheme for over 20 years and buying added years.

Mr Slavin said: 'Any GP over 45 will have been paying into the scheme for more than 20 years. And, if you go into a practice, one or two partners are paying added years, so it's not that unusual.'

GP Online recommends

For more on NHS finances

Read more

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register

Already registered?

Sign in

Follow Us:

Just published

GP consulting room

GPs 'running on empty' as LMC issues third red alert in a month

An LMC has issued its third countywide red alert in four weeks as primary care contends...

Woman holding face in pain

Should GPs treat patients presenting with dental problems?

The MDU's Dr Kathryn Leask considers what GPs should do if a patient presents with...

Conservative Party leadership candidate and foreign secretary Liz Truss

Liz Truss vows to resolve GP pension tax crisis if she becomes prime minister

Liz Truss has affirmed her commitment to resolving the GP pensions crisis but has...

Baby receiving a vaccine in their thigh

JCVI advises changes to routine childhood and HPV immunisation schedules

The Joint Committee on Vaccination and Immunisation (JCVI) has recommended a change...

GP consultation

General practice delivering 'up to double the appointments it is paid for'

General practice in England may be delivering as many as double the number of appointments...

Sign outside BMA House

GP suicide sparks calls for measures to protect doctors from spiralling workloads

The government and policymakers must do more to safeguard doctors and NHS staff from...