Many doctors in the UK are facing unwelcome and unexpected tax penalties when carrying out their NHS work due to a major NHS pension-related mistake. This problem is the result of incorrect pension savings statements issued by the NHS Business Services Authority (NHSBSA). As a result, practitioners find it difficult to accurately fill in their own self-assessment tax returns which can have financial implications.
What Went Wrong?
The NHSBSA has recently confirmed that a significant number of doctors received incorrect pension savings statements for the 2023/24 financial year. These mistakes lead to miscalculations of pension savings, so numbers are distorted. This means doctors are unable to correctly report their tax status to Her Majesty’s Revenue and Customs (HMRC). The matter is made more confusing by the wait for corrected statements, leaving scores of doctors hanging in the balance.
The Impact on Doctors
These mistakes and delays have caused a number of problems for physicians. First and foremost, because the numbers are all wrong, they cannot accurately report their tax status. Second, the time taken to issue revised statements prevents their submission of a self-assessment tax return on time. As a result, physicians could be at risk for financial liabilities, such as excess tax payments or penalties. Many affected doctors have found the situation to be deeply distressing and terrifying.
The BMA’s Response
Now, this issue has been met with a huge response from the British Medical Association (BMA). They have also called on NHSBSA to correct these errors without delay and to self-report to the pensions regulator. They also want payment for members who experience financial losses as a result of these mistakes. This error, as the BMA has also pointed out, could lead to significant financial difficulties and stress among NHS staff.
NHSBSA apology and action plan
The NHSBSA has apologised to the doctors in question and said they made a mistake. They said that they would reissue the corrected statements in a timely manner. They are also liaising with the BMA to support impacted members. It has also commissioned an inquiry into how such errors came to be made and how it will prevent a repetition of the same in the future.
Advice for Doctors
According to HMRC, NHS Pension Scheme members should complete their self-assessment as usual — provisional figure will do if a final figure is not available. HMRC has said it will not levy any financial penalties in cases where any provisional figure later proves to be wrong, so long as the scheme member has genuinely attempted to calculate it to the best of his or her ability and keeps evidence of that calculation. This affords some comfort to doctors anxious about making the tax return deadline.
Incorrect pension savings statements: The NHSBSA sent wrong pension saving statements to many doctors.
Miscalculations and delays: The errors include miscalculations of pension savings and delays to issue corrected statements.
This could have potential financial implications for the doctors, who might end up paying incorrect taxes or being penalized for the same.
Demands of BMA: The BMA demanded that the mistakes should be rectified immediately and affected members should be compensated.
NHSBSA response: The NHSBSA said it was sorry, would reissue amended statements, and was investigating.
HMRC advice: HMRC suggests using a provisional figure for self-assessment where possible, if HMRC believes there was a genuine mistake there will not be any penalties.
This scenario underscores the need for accurate pension information and the impact that administrative errors can have. Although the NHSBSA is moving to correct the issue, it is important that affected medics remain vigilant and take appropriate steps to minimise any fallout.
