Pensions - Articles - Treasury announcement fails to address broken tax system


In response to the Government’s announcement today of a new “public consultation” detailing how it will mitigate the impact of tax rules of members in the National Health Service (NHS) Pension Scheme, Barnett Waddingham has issued the following response.

 Nilesh Shah, Associate, Executive Pensions, said: “Whilst this may be welcome news for a huge number of affected NHS scheme members, the Treasury has so far failed to properly address the wider impact of an imperfect tax structure. There are hints in the latest announcement that these wider issues will in fact be addressed at some point in the future but, for now, we are presented with a stop-gap solution that adds complexity to an already-complicated pensions tax regime.”

 “Whilst the precise details will be in the promised future consultation, this announcement suggests that affected NHS Scheme members will have to make any decision to reduce pension accrual at the start of each year. This could still leave individuals limited by the option they select at the beginning of the year and may yet result in additional hours being turned down as individuals approach tax limits.

 “We request that any changes to the pension taxation system must apply identically to everyone in the same situation, regardless of their employer. It should be available to everyone—not just doctors!

 “We also advise that every affected member engages directly and actively with consultants that have extensive knowledge of the challenges facing senior NHS staff. The complex issues at hand require careful planning and consideration – particularly from a taxation point of view.”
  

Back to Index


Similar News to this Story

Rising theft puts households and insurers on alert
Households and their insurers need to be on alert for rising levels of theft, according to the digital home insurer Policy Expert, whose analysis of c
Nine in ten school leavers unsure what a pension actually is
Pensions can be a confusing topic for people of any age, however, with shocking new statistics revealing that nine in ten (88%) UK school leavers don’
Finance firms provide double the pension contributions
Research from Profile Pensions finds which industry’s employers offer the highest level of contributions – that is, how much they pay into pensions as

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.