Tax breaks for those earning more than £110,000 could be used to end the crisis of doctors turning down work to save their pensions
- The Treasury is believed to be looking at giving relief on pension contributions
- If approved, the announcement is expected by Chancellor Sajid Javid in March
- But doctors’ union the British Medical Association claimed it is a ‘half measure’
Thousands of high earners could get a tax break as part of a radical move to end the doctors’ pensions crisis.
The Treasury is believed to be looking at giving relief on pension contributions to people earning more than £110,00.
It is designed to tackle the issue of doctors turning down extra work because it hits them with an increased tax bill.
Thousands of high earners could get a tax break as part of a radical move to end the doctors’ pensions crisis. It is designed to tackle the issue of doctors turning down extra work because it hits them with an increased tax bill (stock image)
Under the proposal higher charges on pension contributions would kick in at £150,000, the Times reported.
This would apparently free up 90 per cent of consultants to take on extra shifts.
But the tax break would apply to all high earners.
And doctors’ union the British Medical Association claimed it was a ‘half measure’.
Dr Vishal Sharma, chairman of the BMA pensions committee, said: ‘Many doctors will still in effect be paying to go to work.’
If the Treasury agrees the overhaul, an announcement is expected by Chancellor Sajid Javid (pictured) in the Budget in March
All workers start with a tax-free annual pension allowance of £40,000 but, when earnings hit £110,000, for every extra £1 earned above the threshold, 50 pence is taken off the allowance.
This continues until the tax-free allowance stands at £10,000 for the year.
The problem has been blamed for increased NHS waiting lists.
If the Treasury agrees the overhaul, an announcement is expected by Chancellor Sajid Javid in the Budget in March.