1/ As one of the leading experts on pension taxation in NHS I've personally reached out to @trussliz@RishiSunak with my thoughts on this existential threat to the NHS & solutions
If you want #TalkToTony I'd be happy to explain this complex issue.
Read 👇& RT if you agree
2/ I start by explaining in detail how about tax relief in the NHS is *not* the same as the private sector, nor is it the same as other public sector schemes
3/ Much of the general problem has been explained many times, including in the recent excellent @CommonsHealth report that correctly concluded that "It is a NATIONAL SCANDAL that senior doctors are being forced to reduce their working contribution"
4/ But even in the short time since the evidence for that report was collected, things are now moving exponentially with rapidly rising inflation causing issues with #CPIdisconnect#NegativePIAs & the very urgent need to #FixTheFinanceAct as raised recently by @DrDanPoulter
5/ Whilst issues with the Annual Allowance are central to the NHS pension crisis, rapidly rising inflation is now also destroying the Lifetime Allowance at unpredented rates. Ultimately we need a long term solution like offered to the judiciary #taxunregistered
6/ There are solutions. But government need to listen to people that understand this highly complex issue. Time is running out to fix this. Your urgent intervention is required before patient safety is further compromised by these absurdly unfair and ill conceived taxes.
Pls RT
7/ Read the letter in full below (with some minor corrections / typos)
2/ With BMA colleagues we discussed ridiculous tax cliffs in the system which provide a massive discincentive to do extra work (both £100k & £200k tax cliffs) & incentives for some to even DECREASE extra work. Terrible for patients #WaitingLists
Who would want to #TaperTaxHell
3/ But my chart (left) & DHSC example they used to DDRB in 24/25 show only THAT individual, in THAT tax year (and 24/25 was terrible for many).
But it doesnt help an INDIVIDUAL know THEIR position, especially given disatrous pension admin from NHS pension (often years late)
1/ NEW & important - for many of you (the lucky ones) in England & Wales, the new style annual benefit statement - or "Total Reward Statement" has dropped for the 24/25 - but this one is different - very short 🧵
2/ So what's different this time? Crucially this is first set of statements to acknowledge the McCloud remedy for those affected (usually those in NHS pension in March 2012 and between 2015-22).
You will basically get 2 sets of statements "STANDARD" benefits and "ALTERNATIVE"
3/ STANDARD will show ROLLED BACK benefits. Your STANDARD benefits will be in your OLD legacy scheme i.e. 1995 or 2008 for 7 year between 2015-22
ALTERNATIVE will have those 7 years in the 2022 scheme.
EVERYONE (in both set) is in the new 2015 scheme from 2022
1/ NEW & V IMPORTANT update from @nhs_pensions on pension savings statements for 23/24
•@nhs_pensions have self reported to the regulator
•what do YOU need to do for Self Assessment (31/1)
•What compensation might be due
•Next steps
2/ So firstly after @BMA_Pensions wrote to the NHSBSA CEO this is the first time they have openly confirmed in this letter that thay have reported this issue to The Pensions Regulator (our complaint in the quoted tweet below) 👇
1/ V. Important 🧵 if you are CONSULANT in England. This week I used my FREE modeller to identify & correct an error in #AnnualAllowance for 24/25 which I suspect may be a common error. It will save me over £2,600 from my AA liability, buckle up & see if you are affected
Ps RT
2/ As many of you will know Twitter/X is now really difficult to see the information you want to see from the people you follow so please help by RT, but also sending your colleagues on whatsap / FB groups if you think this will help them
3/ In preparation go onto ESR, download Mar '24, May '24 + Nov '24 payslips & 23/24 TRS (+/- 22/23 TRS) - and then I will talk you through IF you are also affected by this "misallocated arrears" error, tell you how to model the impact of this, and how to correct this
1/ THOUGHT FOR THE DAY: Whilst I'm grateful for the changes to LTA/AA, the AA and the dreaded #taper still remain. And here's your regular reminder why its PARTICULARLY unfair, and stupid, in the NHS (from @BMA_Pensions @TheBMA evidence to DDRB).
Short 🧵pls read & share
2/ We are all in CARE now, so should all be paying generally the same employEE contributions.
But we aren't - and its worst - by a garden mile - in the NHS per this chart showing the ratio of conts from the highest earners : lowest earners in the public sector 👇
3/ So unlike in the private sector where there is no difference in cost for higher vs lower owners other than tax relief, we go through this ridiculously unfair step in the NHS - far worse than anywhere in the public sector - that strips away our higher rate relief
1/ very important and NEW: @nhs_pensions have overnight issues guidance on 23/24 tax year where they have failed to send you a pensions savings statement on time (which was their legal duty)
2/ the bottom line is they expect you ESTIMATE your carry forward and PIA and any charge in the normal timescale ie by Jan 31st 2025 …. Which is going to be extremely difficult …..
3/ after you estimate you will have until Jan 26 to correct your estimation based on the real figures