NHS Annual Allowance Summary
Frequently Asked Questions
How is the NHS pension input calculated?
The NHS pension input (pension accrual) is calculated as the increase in the capital value of your pension over the tax year. The opening value is 16 times the pension you had built up at the start of the year, revalued by CPI inflation plus 0.5%. The closing value is 16 times your pension at the year end. The pension input is the closing value minus the opening value.
What is the pension input period for the NHS scheme?
Since 2016, the pension input period for all pension schemes, including the NHS pension, is aligned with the tax year: 6 April to 5 April. Before 2016, the NHS had its own pension input periods, so if you are looking at older years, your calculation will differ. Your NHS pension statement will show the pension input amount for the relevant period.
How do I find my pension input amount from the NHS?
You can find your pension input amount on your Annual Benefit Statement from the NHS Pension Scheme, available through the NHS Pensions online portal. The statement shows your opening and closing pension values and the pension input amount that counts against your annual allowance.
What happens if I exceed the annual allowance in the NHS scheme?
If your total pension input exceeds your annual allowance, you will face an annual allowance charge on the excess. You can pay this yourself via self-assessment, or ask the NHS Pension Scheme to pay it on your behalf through scheme pays. Scheme pays reduces your future pension or lump sum to recoup the charge.
Is the tapered annual allowance relevant for NHS staff?
Yes, many senior NHS clinicians — particularly consultants and senior GPs — are affected by the tapered annual allowance due to high threshold and adjusted income. When calculating adjusted income for tapering purposes, the full pension input amount including employer accrual is included. NHS staff should ensure they include the full pension input from all schemes in their tapering calculation.