NHS pension contributions as locum GP

Hi I’m a GP I contribute to NHS pension scheme I mainly am employed and so my pension is taken off my salary at source , so doesn’t need to be accounted for on the tax return I also have some self-employed income as a Locum, where I have paid employee pension contributions and submitted them to NHS pensions. My understanding is that I can claim tax relief on this remaining pension contribution I’ve made but wanted to ensure it was on the right section of the tax return. Is it box 3 on TR4? (Ie contribution to employer pension scheme) as it is, if you like, an extra contribution to my employer scheme but via self-employed income stream Thanks

Hi,

If you are a higher rate tax payer then you can claim relief on the pension contributions. As you are paying additional payments into your pension, it would be recorded in box 1 on TR4 with details of any one off payments in box 1.1.

Thank you. 

Hi Thanks for replying I am in the NHS pension scheme which is a net-pay scheme, not a relief at source. So would I be right in thinking this extra payment, which hadn’t been deducted from pay before tax, should actually be accounted for in box 3, rather than box 1? Thanks

Hi richiel101

As your employer deducts your pension payments before calculating your tax liability on the balance, you receive full tax relief at source, regrdless of whether you pay tax at 20%, 40% or 45%.  
On those payment, no further relief is due.  If you make further payments to your pension scheme from your income, after you have paid tax, you can claim further tax relief if you pay tax at 40% or 45%.  
Where your pension scheme will claim tax releif from HMRC on your behalf, you would complete box 1, so that you can claim the balance in your tax return.

Thank you

I have a similar question to richiel101 and believe the response provided to the initial question is not correct. The locum pension payments are paid from untaxed income. Do these contributions to NHS occupational pension get put in box 3 on TR4 or do you deduct the contribution to the pension scheme from self-employed profits to receive full relief in the same way as the contribution would be dealt with from employment via PAYE?

Not HMRC...NHS locums pay gross pension contributions as part of the locum contract (in respect of self employment)...treated as old style retirement annuity contracts, so whilst the position is "normal" re salary within the NHS and pension deducted via employment, i.e. relief at source, for locum work not under PAYE the entry on the return is to pensions with no relief previously given, which results in a deduction from income before tax is calculated. Surprised no-one who answered this at HMRC is aware of this.

Hi,
You do not deduct from the self employed profits, as this is not an expense of your business.  
It is only after your net profit is calculated that the pension payment can be declared in box 3 on page TR4.
Thankyou.

Hi, Dendroica,
You do not deduct from the self employed profits, as this is not an expense of your business.  
It is only after your net profit is calculated that the pension payment can be declared in box 3 on page TR4.
Thank you.