Originally Posted by
Ballistic Profile
How did this happen?
I’ve just received a letter through the door telling me my ‘Pension Input Amount’ (the first time I have been aware of these three words being used together) is nearly £90000, that the Annual Allowance limit is £40000 and I’m liable for tax on the difference. I’ve had a steady (but far from meteoric) rise through the ranks to OF5 - it’s not as if I’ve been pulling in some tasty six figure bonuses like some in the civilian world.
Is this the same pension trap that is preventing doctors from doing any overtime?
Any advice from the community would be gratefully accepted. Is is best to ‘cough’ for the whole amount in-year or should I accept a permanent reduction to my pension (through this ‘Service Pays’ scheme).
Am I about to face (effectively) big salary reductions for the rest of my career?
Should I press that big PVR button - it might make economic sense?
Out of interest, are HMRC calculating contributions in relation to the supposed personal SCAPE contribution? If so, someone needs to take them to court.
Only solution I found was to cash it in and look at potential part time reserve on my own terms, whilst earning decent Wonga as a civvie. Incidentally, many civvies are getting around tax by emigrating to Portugal (
https://nomadcapitalist.com/2016/06/...ence-portugal/) where they have a rather nice little tax deal for 10 years of the date you declare residency. I would live guilt free knowing the truckloads of cash HMG are currently incinerating in Brexit preparations. Won’t be my cash they are using.