GPs and practice managers caught up in a ‘nightmare situation’ where they have been sent inaccurate details about their NHS pension pot or are still waiting for information to come through are being advised to ensure they still meet critical tax deadlines.
Last week, it emerged that the NHS Business Services Authority (NHSBSA) has made errors on hundreds of pension savings statements (PSS). These are sent out to scheme members whose benefits have grown by more than the annual allowance and who may be liable for a tax charge for 2023/24.
The BMA, which uncovered the mistakes, said inaccuracies included miscalculations of pension savings – specifically opening values of benefits for 2023/24 that are distorting the amounts pension pots have grown.
More worrying, however, is that the information contained in a PSS is needed before an individial can complete their self-assessment tax return, due in less than two weeks by 31 January 2025.
Alec Collie, head of medical at Wesleyan, the specialist financial services mutual for doctors, said it was a ‘nightmare situation’.
He has highlighted that while many PSSs are wrong, others haven’t been sent out all, despite being due last October. And he has warned that delays are still ongoing.
‘The NHS Business Services Authority says late ones won’t start to be sent out until February, so there’s even more of a delay ahead. On top of that, different UK nations are at different stages of completion in the process too, despite HMRC having single deadlines for the UK. The whole situation is, understandably, causing real confusion and distress.’
Advice from Wesleyan is for affected GPs and practice managers to ensure they still file their tax returns by January 31 using provisional figures, to avoid being landed with penalties.
‘This applies even if you haven’t received your PSS or if you’re worried the figures are incorrect’, Mr Collie further explained.
‘If you think you have a tax charge for 23/24, you need to complete your return with provisional figures within the next two weeks. HMRC has an online guide for how to do this, but we’d urge individuals to seek help from a tax specialist who understands the NHS Pension Scheme to make sure this is as accurate as possible.’
Mr Collie also advised that while pension scheme members won’t be penalised for submitting incorrect provisional data, or for unknowingly breaching the annual allowance, they ‘may be charged interest on any outstanding tax that it turns out [they] should have paid’.
‘Having an accurate estimate of any tax liability can help you avoid being caught out by this down the line’, he said, adding that individuals have until 31 January 2026 to correct their tax return if any updates are needed once the PSS is received or if errors are corrected.
In a separate issue, the NHSBSA also admitted errors and delays with sending out Remediable Pension Savings Statements (RPSS) to scheme members affected by the McCloud remedy.
The details contained in these are needed by members to recalculate their tax position and ensure they are paying the right amount of tax as a result of any changes to their pension because of McCloud.
Mr Collie said: ‘f you’re already received an RPSS, and have not been contacted by the scheme to say you need a new one, then you need to follow the instructions on the letter by 31 January 2025 about how to update HMRC on your tax position. If you do need a replacement because of errors, you’ll have three months from when you receive the new one to engage with HMRC.’
He also added that ‘not everyone will need an RPSS and you shouldn’t automatically worry if you haven’t.
‘But if you think you should have and haven’t, contact the pension scheme for confirmation.’
