How do contributions to personal pension schemes affect income tax position?

Does NHS pension contributions increase basic tax rate?

• I have a client who is a doctor working for NHS and she does some private work as well. NHS are deducting NHS pension contributions from her salary. The last year when I did her tax return I wasn't aware of it and I didn't put the pension contributions on the tax return. My question is since she is a high rate tax payer can I correct the previous submitted tax return with these pension contributions and would she benefit from it (or the NHS pension is like state pension and doesn't increase the basic rate bands)? Thank you for your help. H.

• Answer:

  NHS almost certainly deducts gross (before tax). The way it works is (technically) by an adjustment to bands but in practice you need to file an amendment to the earlier tax return. Very simple - but please please when you file an amendment give the PAGE and the BOX. Specify the year as well.