Specialist advice for Consultants

Whether you are working privately or in the NHS or a combination of the two, you need to be sure that you are organising your affairs to minimise your taxes and ensure your pension is secure.

Contact us today

Scheme Pays Election for Consultants

Helping Consultants make the right choices

We help consultants deal with the annual allowance pension charge and the mechanics of making a ‘Scheme Pays Election’.

Getting the right level of Pension Savings

You will be liable to the annual allowance charge if your annual pension savings are more than the annual allowance for a tax year taking into account any unused annual allowance brought forward.  You will have to report the excess pension savings on your self assessment tax return.

The amount of the annual allowance charge will be included in the tax calculation and you would normally have to pay the charge with your usual self assessment tax.  However, you may make an election requiring NHS Pensions to pay some or all of the annual allowance charge on your behalf out of your pension fund.

There is a downside…

There will be an appropriate reduction in your pension benefits. This is the ‘Scheme Pays election’.

This is not the best choice for everyone

You need to ensure you fully understand the consequences for your pension benefits before you decide to make this election.

In order to make a valid election, you have to meet the following conditions:

  • You have to make the election within the time limit.  For example, if you want your pension scheme to pay your annual allowance charge for a tax year, you must make the election no later than 31st July following the end of the next tax year.
  • Your annual allowance charge for the tax year must exceed £2,000.
  • The amount of your pension savings in the NHS scheme alone must be more than the annual allowance for the year.

If you make the Scheme Pays election, you will still need to make entries regarding your annual pension savings on your self assessment tax return.  You will need to include an entry for the annual allowance charge and entries for the amount of the charge being paid by your pension scheme and the amount of charge being paid by yourself.

Where we come in

  • We can calculate the annual allowance charge.
  • We can help you make the election requiring NHS Pensions to pay the annual allowance charge.
  • We can ensure that you understand the consequences of making the election.
  • We can ensure that HMRC acknowledge that you have made the election and that your account with HMRC is credited with the payment made by your pension scheme.

Contact us for specialist medical accountancy services for Consultants

If you’re looking to plan your finances for the future or trying to find an answer to a problem then get in touch today.



Are you in danger of being hit with a huge tax bill on your pension growth? Our NHS Pension Review Service can provide an advance warning of impending pension issues.

Learn more →



HMRC have increasingly got GPs in their sights and many Practices have been subject to lengthy tax investigations. Make sure you’re covered with our annual insurance scheme.

Learn more →



Talk to one of our Medical Accounting Team for free. We can discuss your circumstances and how we can help you achieve better financial management, reduce your tax bills or plan for the future with a tailored fixed price plan.

Meet our team

We have a panel of subject experts and a team of professional accountancy support staff to make sure your specific needs are met reliably and cost effectively.


A specialist healthcare team to advise you
Call free for support at any time
Keep you up to date with the latest changes
No fuss, smooth process to change to us
Members of AISMA - Association of Independent Specialist Medical Accountants

What our clients say…

Dr David Paige, Consultant Dermatologist, The Holly Private Hospital

The reason I was first attracted to Nichols was when I heard Mr Nichols explain the complexities of the Life-time allowance and the Annual allowance changes in simple terms. I have had no regrets using this firm as they are very trustworthy and honest.

They also sorted out my allocation of rental income to my partner correctly which I had been badly advised on before by a very large and well known accountancy firm.

They respond in a timely manner to queries and (politely) chase me up over submitting my tax return details. I would recommend them to anybody in the medical profession.

Dr Colm Irving, Consultant Anaesthetist

Nichols and Co have done two things for me which have changed my financial life. They advised me to incorporate my practice and introduced me to online accounting using XERO. Both these moves have saved me time, money and stress. If I do get stressed Danny Woodham is immediately available on the end of a phone or an email.

Dr Miguel Plaza, Consultant Paediatric Anaesthetist, Kings College Hospital

I have been with Nichols & Co since the beginning of my career and there is a reason for that. Not only they do their job very well, they simply care for you, because you become part of the Nichols family and this is what makes them unique. They will look after you so well, that you will never want to leave. If you want the best, you want Nichols & Co.

Dr Dimitri Amiras, Consultant

I first started using Nichols and Co in my first year of doing private consultancy work. I found them to be professional, responsive and knowledgeable. It can be quite stressful when you are faced with confusing tax and especially pension rules when you start as a consultant. However, I've always found them able to explain and guide me through the complicated process.

Dr Andrew Plumb – Consultant

I received a recommendation from a colleague for Nichols & Co over 5 years ago and have been with them ever since, initially with Debra and subsequently Danny being my accountant.

They have consistently been responsive, efficient and clear in all communications, whether via phone, email or using their secure online portals. All requests are dealt with rapidly and with a deep understanding of modern hospital medicine including private practice.

I’ve received excellent advice on all matters of taxation and expenses, practice structure, allowances and the NHS pension (including the taper and annual allowance charges). I would definitely and strongly recommend them.