Govt in 'quick fix' move to pay NHS workers' pension tax bills

Tapered annual allowance headache

Jenna Brown
clock • 2 min read

The government is to pay the tax bills of NHS workers caught out by changes to pension contribution limits who have been turning down additional work for fear of running up large tax bills.

It is hoped the move will see GPs and consultants return to taking extra shifts this winter. Royal London said the government plans indicated the tax bills incurred by doctors this year will be covered by the NHS pension scheme under the ‘scheme pays' process. This would normally result in a reduced pension at retirement but the government will make good any reduced pension. However, because the NHS pension scheme is unfunded - in other words, there is no money in the scheme - the NHS pension scheme will need to ask the NHS to provide the money to pay the tax bills to the Treasury.  W...

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