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PENSION PRODUCTS
GENERAL
A9 concession for Doctors and Dentists in General Practice
Doctors and dentists in general practice are taxed under Schedule D. These "practioners" are in the unusual position of being eligible to join an occupational pension scheme i.e.the National Health Service Pension Scheme (NHSPS).
To be members of the scheme they must pay members' contributions of 6% of ¿superannuable pay¿. ¿Superannuable pay¿ is their NHS earnings less an expense allowance. It can be calculated by multiplying the NHS contribution by 100 then dividing by 6.
Extra statutory concession A9* permits such practitioners to pay contributions to retirement annuity contracts (RAP), personal pension plans(PPP) or Stakeholder Personal Pensions (SHP):-
Option A
based on the difference between their net relevant earnings and their NHS earnings (superannuable pay) in addition to claiming tax relief on the contributions they pay to the NHSPS, or
Option B
based on their total net relevant earnings provided that they do not claim tax relief on their contributions to the NHSPS.
Note: the choice of option A or B above can be made independently for each new tax year
Choosing Option A
FSAVC's:
PP / SHP / RAP contributions:
Choosing Option B
FSAVC's:
Contributions are not allowed**.
PP / SHP / RAP contributions:
Note on Concurrency:
Doctors and dentists in general practice are taxed under Schedule D. They cannot make use of the concurrency rules as they only apply to Schedule E employees i.e. employed earners.
NHS Scheme Contacts:
If FSAVC's are to be paid more information can be obtained from:
England and Wales - NHS Pensions Agency, Hesketh House, 200-220 Broadway,
Fleetwood, Lancashire FY7 8LG.
Scotland ¿ Scottish Public Pensions Agency (NHS), 7 Tweedside Park, Tweedbank, Galashiels, TD1 3TE.
* Further information is available at http://www.inlandrevenue.gov.uk
** A situation could arise where a member of a FSAVC chooses to exercise the A9 concession after FSAVC premiums have been paid in a tax year. In this case the FSAVC premiums are not eligible and will require to be refunded for that tax year.
Mortgage Products
Legacy
Disclaimer
Pension Products
Contact
Protection Products
Investment Products
General
GENERAL
Doctors and dentists in general practice are taxed under Schedule D. These "practioners" are in the unusual position of being eligible to join an occupational pension scheme i.e.the National Health Service Pension Scheme (NHSPS).
To be members of the scheme they must pay members' contributions of 6% of ¿superannuable pay¿. ¿Superannuable pay¿ is their NHS earnings less an expense allowance. It can be calculated by multiplying the NHS contribution by 100 then dividing by 6.
Extra statutory concession A9* permits such practitioners to pay contributions to retirement annuity contracts (RAP), personal pension plans(PPP) or Stakeholder Personal Pensions (SHP):-
Option A
based on the difference between their net relevant earnings and their NHS earnings (superannuable pay) in addition to claiming tax relief on the contributions they pay to the NHSPS, or
Option B
based on their total net relevant earnings provided that they do not claim tax relief on their contributions to the NHSPS.
Note: the choice of option A or B above can be made independently for each new tax year
Choosing Option A
FSAVC's:
- Contributions may be made.
- Evidence of earnings is required e.g a letter from the practitioners accountant or using our form X713
- FSAVC limits are based on the ¿superannuable pay¿.
- Dentists have an upper limit to their ¿superannuable pay¿ of £101 300 for year ending 31/03/03 (restricted to the earnings cap for post 89 members)
PP / SHP / RAP contributions:
- May be paid based on non-superannuable earnings (i.e their total net relevant earnings minus their ¿superannuable pay¿.
- Only an age related percentage of non-superannuable earnings can be paid (option to pay up to the earnings threshold to a PP/SHP without reference to net relevant earnings will not be available in any tax year for which relief on the NHSPS contributions is claimed).
- Evidence of earnings is required e.g. a letter from the practitioners accountant or using our form X713.
Choosing Option B
FSAVC's:
Contributions are not allowed**.
PP / SHP / RAP contributions:
- Contributions may be made based on the higher of, an age related percentage of total net relevant earnings i.e. private practice plus NHS earnings, or £3600 to a PP/SHP.
- Contributions in excess of £3600 to a PP/SHP must have supporting evidence of earnings.
Note on Concurrency:
Doctors and dentists in general practice are taxed under Schedule D. They cannot make use of the concurrency rules as they only apply to Schedule E employees i.e. employed earners.
NHS Scheme Contacts:
If FSAVC's are to be paid more information can be obtained from:
England and Wales - NHS Pensions Agency, Hesketh House, 200-220 Broadway,
Fleetwood, Lancashire FY7 8LG.
Scotland ¿ Scottish Public Pensions Agency (NHS), 7 Tweedside Park, Tweedbank, Galashiels, TD1 3TE.
* Further information is available at http://www.inlandrevenue.gov.uk
** A situation could arise where a member of a FSAVC chooses to exercise the A9 concession after FSAVC premiums have been paid in a tax year. In this case the FSAVC premiums are not eligible and will require to be refunded for that tax year.
