NHS Doctors Pensions Error could trigger tax penalties - what you need to know Shipleys Tax Advisors

DOCTORS AND NHS medical professionals may be hit with tax penalties after the NHS Business Services Authority (NHSBSA) admitted to “gross errors” in calculating pension contributions, according to reports. According to the British Medical Association (BMA), nearly 800 doctors were issued with incorrect pension savings statements for the 2023/24 tax year.

In today’s Shipleys Tax brief we look at the latest NHS pension blunder that has left many doctors and consultants at risk of HMRC penalties. Errors in annual allowance calculations mean some GPs cannot finalise their tax returns on time, creating unnecessary stress and possible charges. Here’s what’s gone wrong, why it matters, and—most importantly—what to do now.

What’s gone wrong?

According to the BMA, at least 757 doctors were issued incorrect 2023/24 Pension Savings Statements (PSS). The error relates to the opening value for 2023/24, which was wrongly increased by an extra 1.5% on top of the 10.1% CPI revaluation set by law. This produced incorrect Pension Input Amounts (PIAs) and has made accurate self-assessment difficult for affected clinicians. The NHSBSA has acknowledged the error and indicated the PIA shown was lower than it should have been. 

The error relates to the opening value for 2023/24, which was wrongly increased by an extra 1.5% on top of the 10.1% CPI revaluation…

What does HMRC say?

HMRC allows you to file on time using the best available (provisional) figures and amend within 12 months of the filing deadline without a late-filing penalty. Do note that interest can still apply if extra tax becomes due on amendment. NHSBSA guidance mirrors this approach for affected members. 

Annual allowance refresher – why this is an issue

  • Standard annual allowance: £60,000.
  • Tapered allowance: if threshold income > £200,000 and adjusted income > £260,000, the allowance tapers down to a minimum of £10,000 at higher adjusted incomes. 

Practical steps for doctors to take now

  1. Identify if you’re affected – check your 2023/24 PSS and any NHSBSA letters; note the 1.5% opening value issue. 
  2. File by the deadline using estimates – protect yourself from late-filing penalties; diarise to amend within 12 months when the corrected PSS arrives. 
  3. Retain evidence – keep NHSBSA/BMA correspondence and workings you used for your estimate.
  4. Re-work your position – use payslips and prior statements to sense-check likely PIA and possible carry-forward.
  5. Use carry-forward – bring in unused allowances from the previous three years to reduce any annual-allowance charge (where eligible).
  6. Assess taper risk – if you’re around the £200k–£260k thresholds, get advice to avoid inadvertent taper traps. 
  7. Claim your costs – if you’ve incurred extra accountancy fees or interest solely because of this error, the NHSBSA will consider reimbursement. Keep invoices and bank proof. 
  8. Amend promptly – when your corrected PSS arrives, submit the amendment to limit interest and tidy up your records. 

File by the deadline using estimates – protect yourself from late-filing penalties; amend within 12 months when the corrected PSS arrives…

Why this matters for medical professionals

The NHS pension is a major and valuable benefit. However, complex annual allowance and taper rules can create unexpected tax charges and discourage extra sessions—administrative errors only make the situation worse. Specialist advice helps ensure you pay the right tax—no more, no less. 

Conclusion – take professional advice

At Shipleys Tax, we specialise in advising GPs, consultants and healthcare professionals on NHS pension tax. We regularly:

  • Check, amend and appeal incorrect pension tax calculations;
  • Structure earnings to minimise annual-allowance exposure and protect retirement wealth;
  • Handle filings on time—even where provisional figures are needed—and tidy up once corrected data arrives.

Concerned about your NHS pension statement or potential tax penalties? Contact us below:

Sheffield: 0114 303 7076                        Leeds: 0113 320 9284                 

Email: info@shipleystax.com

Please note that Shipleys Tax do not give free advice by email or telephone. The content of this article is for general guidance only and should not be considered as tax or professional advice. Always consult with a qualified professional before taking action.

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