Budget 2020 – an increase to the annual allowance

This afternoon, Rishi Sunak, the Chancellor of the Exchequer, delivered his first Budget. There was plenty of insightful content, on which our tax experts will give their thoughts tomorrow during our Budget Review Webinar, but I wanted to highlight an announcement that affects the medical sector. 

We welcome the news that the annual allowance threshold will be increased by £90,000 for the 2020/21 tax year. This means that any GPs and hospital consultants earning up to £200,000 will now get the full annual allowance of £40,000. 

While this won't remove higher earners with growth above £40,000 from having a tax charge, most GPs and hospital consultants will not have their annual allowance tapered down. It'll be important that NHS pension records are kept up to date so that higher earning GPs and hospital consultants can assess their tax position and again we encourage you to review your total reward statement to ensure all looks accurate.

If you would like to book onto our Budget Review Webinar, you can by clicking here.

Need help?

If you wish to discuss any of the above, please get in touch. Call 0330 024 0888 or email enquiry@larking-gowen.co.uk.

Louise Dean