Ndubuisi Egwim explains how UK doctors can avoid the 60% tax trap through pension contributions. You can contribute up to £60,000 yearly to your pension, and salary-sacrifice arrangements through the NHS can help reduce your tax bill significantly.
And one of the biggest ways to deal with the 60 tax trap we've already talked about, there are many options, but the biggest option is through pension. So because everyone is allowed the £60,000 pension. I know you guys gave the answers. Yeah. The correct answer is £60,000 pension allowance. So those of you that got it, you can put your hands together for yourself. You're allowed every year in the UK, every tax year, you're allowed £50,000. That's the maximum amount you can put in your pension. I know, I know, I know. If you're an ST one, you're thinking, well, I don't have that amount of money. Yeah, but it's good you know about it before you hit that amount. And I can see consultants and GPs, I can see some of you that already know that I've been in session. Like, I see you nodding your head because probably you already affected. I think someone make that I mentioned here that she was affected. Excellent. Yeah. Sorry, ask. Is that the NHS pension? That includes everything. Your NHS pension. If you've got a pension, if you've got a salary, sacrifice anything that you put into your pension. 60,000 is the maximum you can put in the air.
