YouTube video by Ndubuisi 'Andy' Egwim explaining how NHS pension contributions interact with UK tax relief rules and the £60,000 annual allowance. The speaker outlines typical employer and employee contribution rates, how pension growth counts toward the allowance, and gives a worked example where £40,000 of NHS pension growth leaves £20,000 available before reaching the £60,000 limit.
Before you get your pay, have you ever looked at your pay slip? If you look at your pay slip, did you ever. NHS pension deducted. So that NHS pension is deducted before tax, okay? So it's entirely tax free and that's part of what makes up that 60%. So imagine in a tax year, maybe you're a consultant or even your gp, and your NHS pension, so far you've put it up to the growth in it is up to 40,000 pounds, including the amount that's been put in by your employer, including the amount that has been put in by yourself. Usually the highest level will be 12.5% of your salary going into the NHS pension. And your employer is putting in about, let's say, 23.7%. Okay? Now let's say you have 40,000 pounds from your NHS pension. Remember, the maximum you can put in in a taxi to get tax relief is how much? £60,000. Want to get the most out of this session. So that means if the pension growth in your NHS pension is 40,000, basically you have £20,000 that you can still contribute, is that correct?
