Specialist advice for GP Medical Practices

Working within the NHS, resources and funding are always going to be critical to your general practice, but so is getting the correct financial and accounting advice to guide you through the myriad of conditions, rules and restrictions.

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Scheme Pays Election

Helping you make the right choice

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

What is a Scheme Pays Election?

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 your tax calculation and you would normally have to pay the tax 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 will be an appropriate reduction in your pension benefits.

This is the ‘Scheme Pays Election’.

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

When this might apply to you

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.

How Nichols Medical Accountants can help with this

When you use us to handle your affairs we can take the confusion out of things. We can:

  • Calculate the annual allowance charge.
  • Help you make the election requiring NHS Pensions to pay the annual allowance charge.
  • Ensure that you understand the consequences of making the election.
  • 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.
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Contact us for specialist medical accountancy services for GP Medical Practices

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.

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NHS PENSION REVIEW

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.

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TAX ENQUIRY PROTECTION

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.

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EXPERT CONSULTATION

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.

HOW WE CAN HELP

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…

Tracy Ford, Practice Manager

We have been with Nichols & Co for over a year now. Very smooth transition with good communication at all times. We found them very professional and their knowledge of general practice is very reassuring. They make what can be complex situations easy to understand.

They have also introduced us to a Personally Administered Items claim review service, which has helped us not only making a retrospective claim for the missed income but also delivering improvement in our PAI income going forward.

I wouldn't hesitate to recommend them to anyone looking for an excellent, friendly, reliable accountancy service.

Dr William Jasper, GP Partner

We have received an excellent service since we moved to Nichols & Co. The transition has been the most hassle-free and transparent. They are always very helpful with any queries you might have and have a very good working knowledge of General Practice and are keenly aware of the challenges Practices face within the changing environment of the NHS.

We have been very impressed by the way Nichols & Co continue to deliver the range of services they provide from Accounts to Tax and NHS Pension advice.

At the year-end meetings, the accounts are presented in an understandable format without any unnecessary jargons. We have found Practice consultation and advice on Practice as well as personal tax matters from Nichols & Co specifically helpful.

We would not hesitate to recommend them to other GP Practices.

Drs R and N Nair

Nichols & Co have been our accountants for the last 6 years and we always feel that we are a valued client of theirs. They respond promptly to any queries you have either via email or telephone or if need be, in person. Each year Debra visits me at my practice and takes time to go through the accounts with me so that I really understand them, helping me make better decisions.

In 2017, we moved into new premises, and Nichols and Co were able to assist me with claiming back a large amount of tax on the refurbishment of our new premises.

Our practice has changed a great deal over the last few years and having the support of a good accountant has been a great help. I would recommend them without reservations.

GP Partner, London

Nichols and Co have provided high standard medical accountancy services to our GP practice for many years. 

They are experienced in their field and provide a dedicated partner who attends our annual financial partnership meeting. This meeting allows time for all involved to raise queries regarding issues such as tax and pension. Additionally, wider comparisons are made with local and national figures. Queries raised at other times are dealt with in a professional and time efficient manner.

I can recommend them.