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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 16630
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My annual NHS pension growth has exceeded the annual

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My annual NHS pension growth has exceeded the annual allowance. I am on PAYE but have been told I cannot pay via my employer in this route. I do not want to do scheme pays, I simply want to pay what I know is due. How can I do this without registering for self assessment?
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: I have spoken to HMRC this morning who were unsure how this should be sorted so they said I need to register as self assessment. Once I start this, I suspect I will end up doing annual self assessments.

Hi. My name is Tony. I'm looking at your question now and will post my answer or ask for more information here in a short while.

You cannot do it other than via self-assessment I'm afraid. If the annual allowance charge liability is more than £2,000 you can ask the pension fund to pay it.

 

Registering for self-assessment does not necessarily mean you will have to complete tax returns for ever more. It depends on your circumstances.

 

Unfortunately, unlike other employers the NHS has been incompetent when running its pension fund as so many higher paid employees have run into an annual allowance charge when what should have happened was for pension contributions to be suspended. I have dealt with many tax problems over many years because of the NHS payroll mismanagement which I admit is huge but this annual allowance charge problem that many are experiencing should not have happened.

 

I hope this helps but let me know if you have any further questions.

TonyTax and other Tax Specialists are ready to help you
Customer: replied 13 days ago.
Thanks for your help.

Thanks.