Readers' forum : No net income

In 2013-14 a doctor’s taxable income comprised the following approximate figures: partnership profit of £75 000 and employed income of £25 000 (£20 000 after tax at source) which was for one day a week for the clinical commissioning group (CCG). There were also some dividends and interest received but let’s say that the total income was £100 000. Gross NHS pension contributions of about £20 000 were deductible from his share of the income from general practice partnership profits. The total tax and National Insurance liability payable after tax deducted at source was in the region of £21 000.

The employed CCG position equates to a fairly high full-time equivalent salary level and this caused the notional NHS pension entitlement to increase significantly in 2013-14. This created a pension annual allowance taxable exposure in that year of more than £150 000 after the deduction...