By: 2 November 2022
Cavendish Medical column: Have you received your pension statement?

Dr Benjamin Holdsworth on why you should request it

Annual pension statements for 2021/22 are now available from the NHS Pensions Agency and are essential to help you establish whether you are likely to be paying substantial tax charges on your pension savings.

The NHS Pensions Agency is duty bound to send statements to those believed to be breaching the standard annual allowance of £40,000 but not to those exceeding the ‘tapered’ annual allowance which applies to higher earners and can be as low as just £4,000.

For this reason, many medics wrongly believe they do not have an excess tax charge to pay on their pension growth, but they might not have been made aware of the problem.

This year, we have the added complication of the McCloud remedy which will offer compensation benefits to those deemed to have suffered age discrimination when moving to the 2015 NHS Pension Scheme.

While it is true that the judicial ruling may mean the figures for many doctors of the last few years will need to be recalculated, the official legislation is not due until October 2023. It is therefore important to address your pension savings’ tax issues in the normal way with the correct figures now – including paying any tax liable – and then recalculate when your new pension details are known at a later date.

Those breaching the annual allowance can apply for the NHS to pay the tax charge under Scheme Pays in exchange for reduced future benefits. The application for Scheme Pays is normally 31 July each year so for the 2021/22 tax year, this will be 31 July 2023. However, the deadline for 2020/21 has been extended to 31 March 2023. There are also other payment options which should be considered.

The NHS Pension Scheme gets ever more complex every year and we are here to help you navigate the best path forward.


Dr Benjamin Holdsworth is director of Cavendish Medical – specialist financial planners for medical professionals in the NHS or private practice. For a second opinion on your finances, please contact us on 020 7636 7006. 

The content of this article is for information only and must not be considered as financial advice. Cavendish Medical always recommends that you seek independent financial advice before making any financial decisions.  
Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor. The value of investments and the income from them can fluctuate and investors may get back less than the amount invested.