As mentioned in previous articles, the NHS is not providing annual allowance data for the 2022/23 tax year. At the time, we expressed our concern that many would assume they would have an annual allowance liability as they had not received any notification of a tax breach. This decision could have led to a position where many medics were not declaring tax liabilities, blissfully unaware it was due to a lack of notification.
HMRC have just announced some good news
The Revenue has recently announced that providing you meet the correct criteria, you do not need to notify them of your annual allowance position for the 2022/23 tax year by January 2024. Instead, they intend to provide documentation that generally will need to be submitted by January 2025.
HMRC have stated the qualifying criteria as follows:
- The person is building uprights in the NHS pension scheme
- Have rights under a public service scheme impacted by the remedy (McCloud Judgement)
- Will have an annual allowance charge for the 20022/23 tax year.
We have already been working on annual allowance calculations for some of our clients, so although the news is welcome, a few months earlier would have been more helpful!
Do get in touch with your adviser if you need further information regarding your annual allowance.
This article is based on our understanding of current legislation and does not constitute advice. Everyone’s circumstances differ, so we encourage you to contact your specialist accountant or Legal and Medical advisor to discuss how this affects you.