The BMA is urging the Government to extend the deadline for doctors impacted by the McCloud age discrimination judgment to determine their tax position, as thousands of doctors have not received theirpension statements on time. Without these, the BMA says, affected doctors will find it “impossible” to plan their work.
Doctors affected by the ‘McCloud remedy’, which sought to address age discrimination caused by changes in 2015 to public sector pensions, were supposed to have received ‘remedial pensions savings statements’ (RPSSs) by Sunday 6 October this year. However, several pension schemes such as those covering doctors in Scotland and the Armed Forces, have informed members that they have failed to meet the statutory deadline and whilst despite repeated assurances from the NHS Business Services Authority (that administers the NHS pensions scheme in England and Wales) that it would meet the deadline, the BMA report that in many cases it has failed to do so.
As part of the remedy, doctors affected were moved back into their ‘legacy’ 1998/2008 scheme for the years 2015/16 to 2021/22.
These statements are therefore required to provide members with the updated pensions savings information to reflect the move back to their old scheme. Doctors then have until the end of January 2025 to provide HMRC with this updated information via an online tool to assess whether this has affected their pension tax position, and also need to complete their self-assessment tax return for 2023/24 by the same date. However, they do not have the necessary information to do so.
This same situation arose for the 2022/23 tax year and as a result HMRC extended the deadline for the reporting of pension tax charges, but so far hasn’t indicated that it will do this again this year.
Doctors and other affected public sector workers were supposed to begin to receive the RPSSs from April 2024 and before the statutory deadline of 6 October. However, with just four months to go, and doctors still waiting to receive their RPSSs, the BMA says this is not enough time for them or financial advisors to plan appropriately.
While doctors may be owed money – or indeed owe money – as a result of the remedy, their tax position also affects how much additional work they can take on without breaching their annual allowance, given they can ‘carry over’ any remaining allowance from the previous year.
Writing to City Minister Tulip Siddiq, BMA pensions committee chair Dr Vishal Sharma, said:
“For those members impacted by the McCloud judgment, this presents a further feeling of injustice given that information on their pensions savings was not provided to them for the 2022-2023 tax year. Not only does this mean that they potentially have an unknown tax liability for that period, but it also impacts on their ability to know if they have any ‘carry forward’ available in the current financial year. This prevents them from making informed decisions about whether they can take on any additional work or responsibility without breaching the annual allowance.”
The BMA is therefore asking the Treasury to extend the January 2025 deadline for both completing the online tool for the McCloud Remedy and the reporting of pension tax for the 2023/24 tax year.
Dr Sharma continues:
“We are asking that you extend, by at least 12 months, the deadline for using the HMRC Digital Service for RPSS statements, and also allow flexibility for the reporting of annual allowance via self-assessment for 2023/24 - exactly as was done in the prior tax year for the same reason. This will enable doctors and their advisors fair time to receive their statements and to prepare their returns, enabling them to continue to undertake their NHS work to the fullest of their abilities.”
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Notes to editors
The BMA is a professional association and trade union representing and negotiating on behalf of all doctors in the UK. A leading voice advocating for outstanding health care and a healthy population. An association providing members with excellent individual services and support throughout their lives.