Ndubuisi 'Andy' Egwim advises NHS doctors on maximizing pension contributions to reduce taxable income. He recommends contacting the NHS pension administrator to increase contributions where possible, notes that many (especially consultants) may already be near contribution limits, and references his written guide for exact contribution levels and the "60% tax trap."
There are two problems here. Some people don't use all the allowance and then there are people who use less than the allowance and they. I mean, if you don't have the extra cash, yeah, that's fine. But some people have. But they don't know that they can actually use up the allowance. So one way to go about it could be contribute as much as you can to your NHS pension. If you're in the NHS pension. I'm not in the NHS pension. Obviously, you lucky guys in the NHS pension, if you've got a salary job, you're in the NHS pension. So you can actually ring up your NHS pension administrator to ask them, oh, I want to add some more to my pension. And a lot of times they will tell you the amount you can put in. Not very much, especially if you're a consultant. Most times you're already contributing as much. If you read my guide on the 60% tax trap, I put in the levels you can contribute for your pension. Again, I put in the exact number in my guide, so. So again, that doesn't bring you to that 60k. So now, if you don't use up your 60k, that's fine, but that's one strategy. If you decide to put in as much as you can into that, that will automatically reduce the amount that is taxable because your pension is counted before your tax.
