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CALL USBRIDGEND - 01656 679800
CARDIFF - 02920 731274


We act for over 50 dentists, a mixture of principles (practice owners), associates and since 2006, dental body corporates (limited liability companies).

Over the last four decades we have assisted our dental clients in buying and selling their practices. We have advised our clients on the most appropriate structure for their needs, sole practitioner, partnership, expense share or dental body corporate.

The 2006 dental contract introduced major changes in the way all dentists accounted for their pensionable earnings and superannuation. As a member of NASDAL and on their Superannuation Committee David Paul was instrumental in drafting, with the Pension Agency, the definitive Superannuation Guidance Notes. The notes helped all dentists in the NHSPS to correctly return their pensionable earnings.

As a member of NASDAL we are in touch with the latest developments in the dental field. NASDAL acts for about 25% of all dental general practitioners in the UK. NASDAL undertakes an annual survey of dental earnings, profits and expenses from which we are able to benchmark our client performance against their peers.

If dental clients are to achieve the best results from their complex practice arrangement, an experienced specialist accountant is needed. Graham Paul fulfils that need for our dental clients.

NHS Pension Scheme (NHSPS)

We act for over 300 doctors and dentists who are members of the NHSPS. The NHSPS is one of the best final salary schemes in the UK. As such its members are very vulnerable to the recent tax charges imposed on all pension schemes, the better the scheme, the greater the risk.

The attached article is one that has been circulated to our clients who are members of NHSPS and at risk.

Your pension is under attack!

As an active member of the NHS Pension Scheme (NHSPS), one of the largest pension schemes in the world, you will, on retirement, enjoy exceptional benefits.

Recent changes to taxation of pension schemes put these benefits at risk. The better the scheme, and the NHSPS is one of the best, the greater the risk. This threat takes a two pronged attack.

  • An annual allowance charge

  • A lifetime allowance charge

Annual Allowance Charge

You are presently able to invest £40,000 annually in your pension before a tax charge starts to bite. This is not the superannuation you pay on which you receive tax relief but something called a deemed pension contribution which is calculated using a complicated formula.

Allowable deemed pension contributions have reduced from £225,000 to £50,000 to £40,000 with proposals from all political parties to reduce the figure even lower.

Lifetime Allowance Charge

This is the amount you can invest over your working life to pay for your pension. The amount you can invest has steadily reduced from £1.8 million to £1.5 million to £1.25 million and from 1 April next year to £1 million. Once these limits are exceeded penal rates of tax apply.

The NHSPS, as with the annual allowance, has devised a formula to calculate the lifetime allowance figure. These rules only apply to the NHSPS. If you also have a private pension scheme your chances of falling foul of pension taxation increase substantially.

The Way Forward

All political parties look at pension schemes as a “cash cow” for raising revenues. There is, therefore, a high risk that the taxation of pension schemes will be tightened even further putting at risk your eventual pension benefits. Year on year management and review of your pension arrangements is now essential. Failure to do so could result in an unexpected and penal tax demand.

If you have exceeded the Annual Allowance charge, currently £40,000, the NHS Pension Agency has a statutory duty to inform you using a form called an Annual Allowance Pension Savings Statement. No such duty applies to anyone else who does not meet this criteria. However, a member of the NHSPS can apply for their individual Annual Allowance Pension Savings Statement.

Graham Paul is compiling a register for clients who are members of the NHSPS. This register provides the data base in assessing your risk to pension taxation. The register is reviewed on a “traffic light” basis. Once you are on an amber or red light we would advise you to take active steps, in conjunction with your specialist Independent Financial Advisor, to mitigate your risk to the pension tax charges. The obtaining of details from the NHSPS, particularly the Annual Allowance Pension Savings Statement, is the major source of information needed to compile the register.

We can obtain this information on your behalf from NHSPS. If you wish to proceed down this route, we enclose a letter of authority in duplicate to the Pension Agency for us to act on your behalf. The office copy needs your signature and to be returned to us in the enclosed business reply envelope.

Remember you are at risk from the new pension tax regime. Graham Paul are here to help you mitigate that risk.

In conjunction with our Tax Department we aim to identify our NHSPS member clients so that proactive planning, in conjunction with a Specialist IFA, can be undertaken.

Gone are the days when NHSPS members could leave pension and tax planning to the last moment. Year by year reviews are needed if a potentially penal tax charge is to be avoided.

Graham Paul is here to help.

Next Step:

Please contact us if you need further advice, have any questions about our services, would like a free consultation or a free fee quote.



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