The NHS has introduced the Cost Claim Back Scheme to provide relief for members directly impacted by the McCloud remedy. This scheme applies to anyone who has or is considering professional advice from accountancy firms or financial advisors regarding changes to the NHS pension scheme, allowing eligible individuals to recover direct financial losses or tax losses incurred due to the McCloud Remedy.
What can you claim for?
There are two levels of claims available under this scheme…
Accountancy Advice: You can claim an allowance of up to £1000 inclusive of VAT per piece of advice. This covers costs related to submitting revised annual allowance calculations to HMRC via the HMRC digital service. The claim period is limited to 12 months from the issuance of the revised remedial pension saving statement.
Financial Advice: A £500 allowance, including VAT, is provided per piece of advice. This applies when seeking guidance on whether to retain pension benefits in the legacy scheme or transfer to the 2015 scheme. It is particularly relevant for those receiving their pension or anticipating pension commencement within the next 12 months.
Other Considerations
In addition to the specified allowances, the scheme also accounts for additional expenses, albeit with some ambiguity.
These include:
- Professional advice fees for the transition to the 2015 scheme (now invalid due to rollback).
- Necessary additional advice due to the remedy changes.
- Incurred direct financial losses.
Who is eligible?
To check if you are eligible and to understand the conditions, refer to the NHS Cost Claim Back Rules.
How do you claim?
Please refer to The Remedy Cost Claim Back Form to make your claim.
You must meet conditions 1 or 2 in paragraph 5, as outlined in the scheme rules (it extends over four pages and is not light reading).
Incorrect Tax
While the NHS Cost Claim Back Scheme is a valuable resource, it’s essential to note that it does not rectify your tax position following the issuance of remediable pension saving statements. If your tax position is affected, use the HMRC digital service to claim overpaid tax.
It’s good to see some consideration towards the workload the McCloud Remedy produces. The ramifications are complex for many, and professional help is often necessary, so please do check your eligibility and claim your costs for this advice.
This article is not specific advice and is for guidance only.
Have you incurred financial or accountancy costs? Are you going to claim? Let us know by adding a comment below.