02 / 08 / 2019
Our quick guide is designed to help you raise awareness of the options available to members of the NHS Pension Scheme affected by the annual allowance.
The handy one-page guide can be shared with staff to highlight the options available, such as:
- carrying forward unused allowance from previous tax years
- using scheme pays to pay the tax charge to HMRC, with a corresponding reduction to their benefits in retirement
- paying the tax charge from existing personal funds or savings.
The annual allowance is the amount of pension savings an individual can make in one year without paying tax. If an employee builds up pension savings that exceed the annual allowance, a tax charge is due on the value of the excess benefits. Employees must take action to understand if they have incurred a tax charge and to consider the options available to them. We would encourage staff to take independent financial advice to ensure they fully understand their position and are able to make well informed choices.
The infographic includes links to further information about the annual allowance to help improve awareness and understanding.
We have a wide range of further pension tax resources available on our pension resource library.
Please tell us what you think about our products and resources by emailing firstname.lastname@example.org.