The NHS have taken action to avoid winter treatment delays by deciding to cover all senior doctors tax bills. Senior doctors and consultants are refusing to work overtime as they are worried it could prompt a large pension tax charge.

The reason for this is because if NHS staff earn more than £110,000 per annum, they could pay tax rates of more than 90% of their pay which includes their pension contribution. This is why many are refusing extra work because if they earn a penny over the tax threshold, they could be faced with a tax bill worth thousands of pounds.

Therefore, senior NHS staff have been cutting back on their hours which is leading to understaffed hospitals. This is the reason why the NHS has agreed to cover all doctors tax bills to avoid a staffing crisis. How in practice this will be achieved is expected to be complex.

These changes were made in 2016, the main reason why this was brought in was to limit tax relief higher earners can claim on their pension savings. This means that some senior NHS staff have received tax rates of more than 100%, which is leading to staff refusing shifts as they could ending earning less money. But because of the increased demand the NHS cannot to afford to have staff refusing overtime over the winter months which is the busiest time of the year.

How can we help

At Hawsons we have a dedicated team of healthcare accountants at our offices in Sheffield, Doncaster, and Northampton. We pride ourselves on the in-depth knowledge and experience our team have developed in a number of specialist areas, across the healthcare sector, including GPs, care homes and pharmacies.

If you would like to book your free initial meeting with us click here.

If you would like to find out more about our healthcare accountants click here.

More from our GP practice experts

You can find all of our latest GP practice sector news and newsletters here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Scott Sanderson

Partner, Sheffield

0114 266 7141

[email protected]

Our offices

Pegasus House, 463a Glossop Road, Sheffield, S10 2QD

5 Sidings Court, White Rose Way, Doncaster, DN4 5NU

Jubilee House, 32 Duncan Close, Moulton Park, Northampton, NN3 6WL

Northampton

01604 645 600

Contact

Get in touch

All content © 2019 Hawsons

Pin It on Pinterest

Share or print...

Shares