Publish date: 2 December 2021
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The Annual Allowance set by HMRC, is the maximum amount of pension savings you can receive tax relief on each year. If the growth in your pension savings is more than the Annual Allowance, then a tax charge may be payable on the amount over the annual allowance. This is the Annual Allowance charge. If you are over the Annual Allowance limit with the NHS Pension Scheme, then NHS Pensions will send members a Pension Savings Statement (PSS) by 6 October each year. If a member is subject to an Annual Allowance charge, they may be able to elect for the NHS Pensions to pay some or all of the charge on their behalf, from the NHS Pension Scheme. NHS Pensions will only pay the Annual Allowance charge from the NHS Pension Scheme if it receives a Scheme Pays Election notice on time and if mandatory requirements prescribed by HMRC are met. HMRC’s usual deadline for making an initial election is 31 July in the year following the tax year of the Annual Allowance charge. However, in order to support members of the NHS Pension Scheme during COVID-19, NHS Pensions has now extended this year’s deadline further to 31 March 2022. Further information is available via the NHS Pensions website
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