‘I’m moving abroad after Labor taxed me 70% as an NHS staff member’ | United Kingdom | News

NHS doctors are being forced to turn down shifts and even move abroad to avoid being taxed 70%, as unions warn Rachel Reeves is putting her own goals at risk.

When a doctor earns more than £200,000 a year, their annual pension allowance begins to fall by £1 for every £2 earned above this threshold.

As a result, those earning between £200,000 and £242,500 earn less despite working more hours, according to the British Medical Association (BMA).

An NHS anesthetist and critical care specialist who asked to remain anonymous revealed he has been refusing extra shifts “for years” because of it.

He said The telegraph: “Each year, as I approach the annual pension tax threshold, I stop working overtime for the NHS.

“In effect, if I exceed this threshold, I start to lose my tax-free annual pension allowance and end up paying a nominal tax rate of around 70%.

“I have to work overtime when we are short of intensive care. [intensive care units]. But if we put in place extra weekend surgery lists to eliminate waiting lists, I won’t be able to do them for fear of hitting my annual allocation threshold.

“I am currently considering spending a year abroad – partly to minimize my pension taxes. My role will need to be replaced by a locum, which could cost the NHS dearly.

“The nominal tax rate of 70% usually only kicks in after £200,000. I’m lucky to have some investment income and my basic salary for a 48 hour week is £130,000. So I’m heading towards £200,000 before doing a lot of overtime.

“The £200,000 I think is a cliff if you get a pay rise and your pension growth is high. When it’s added together to reduce your tax-free amount, you’re looking at a big bill.

“I don’t know how much my pension will grow until six months after the end of the year and I receive an assessment. This means almost everyone wants to avoid the £200,000 threshold because they don’t know how much his pension will grow until it is too late.

“As most doctors are risk averse, they stay well below that threshold. I try not to earn more than £190,000.”

Chairman of the BMA Pensions Committee, Dr Vishal Sharmer, previously said: “Doctors now have no choice but to reduce their hours or refuse additional work and the Government’s commitment to offering these additional appointments will be seriously compromised. »