Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Avoid the 60% Tax Trap with This Pension Hack Doctors Miss! 💷🛡️

22 Jul 2025 · 1 min

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0:58

UK doctors can use pension contributions to dodge higher tax rates. Basic-rate taxpayers get 20% relief automatically; higher earners claim extra relief on self-assessment. The annual allowance is £60,000, and the NHS salary calculator shows exactly how much you'll save.

Questions this video answers

20%

HMRC gives 20% at source and the taxpayer claims the other 20% through self assessment.

£60,000

Chapters

So if you're a 20% taxpayer, HMRC will give you 20% on the money put on your pension. If you're a 40% taxpayer, HMRC will give you 20% and then you claim the other 20% through self assessment. So one way you can avoid the 60% tax trap is to contribute more to your pension. You can do it is that you can reduce your taxable income. And if you're a doctor or healthcare professional, even if you're a professional, I can go to NHS salary calculator.com as we built that tool for free. So I built it because I kept explaining this thing and people are not understanding it. So once I built it, Dr. Started making videos about it. You can work out how much tax you can how much pension you can put into your pension. You can increase your pension and reduce the tax that HMRC can collect. So you have a maximum of 60k you can put in your pension and for some of you might end up you've used up the 60k, you still have money to put in somewhere.