If you’re a member of the NHS Pension Scheme, there are some important deadlines and changes you need to be aware of – especially around annual allowance tax charges, the McCloud remedy, and the use of scheme pays to settle liabilities.
What is the annual allowance?
The annual allowance is the maximum amount of pension savings you can make in a tax year before incurring a tax charge. For most people, the limit is currently £60,000.
If the combined growth across your NHS pensions goes above this threshold in any given tax year, the NHS pension agencies are required to send you an annual allowance statement.
The McCloud remedy and RPSS statements
As part of the public service pension remedy (also known as the McCloud remedy), you may receive a remediable pension savings statement (RPSS) if:
- You exceeded the annual allowance between April 2015 and April 2022, or
- You went over the standard annual allowance in the 2022/23 tax year and haven’t yet claimed any pension benefits or retired on or after 1 October 2023.
This statement helps calculate whether a tax charge applies — but working out the final figure is complex and will likely require support from an accountant or an independent financial adviser.
Paying the charge: key deadlines
If you do have a tax liability, there are two main ways to pay it:
- Directly via your tax return – by 31 January following the end of the tax year.
- For example, the deadline for 2021/22 would have been 31 January 2023.
- Using scheme pays – a facility that allows your NHS pension scheme to pay the charge from your pension benefits.
There are two types of scheme pays:
Mandatory scheme pays
- Available if the charge exceeds £2,000 and is due to breaching the standard annual allowance.
- Deadline to submit the SPE2 scheme pays election form is usually 31 July following the end of the tax year.
Voluntary scheme pays
- Available if your charge is below £2,000 (but still needs to be more than £1000 in Scotland), or the breach is due to exceeding a tapered annual allowance (a reduced allowance for high earners).
- The deadline is still 31 July, but the scheme isn’t obliged to accept the payment unless they agree.
You’ll need to complete and submit an SPE2 form to use scheme pays:
Delays caused by the McCloud remedy
The implementation of the McCloud remedy has delayed the issue of RPSS statements. These were due by 6 October 2024 for the 2022/23 tax year, but many members are still waiting.
To account for this, revised scheme pays deadlines have been set:
- 6 July 2025 – for active or deferred members
- 6 July 2027 – for pensioner members
However, many members still haven’t received their RPSS and therefore can’t confirm whether they owe a charge – or how much. As the 6 July 2025 deadline approaches, this is becoming a serious issue.
What to do if you haven’t received your statement
HMRC has advised that members submit an estimated liability if their RPSS hasn’t arrived. This may require help from an accountant to ensure a reasonable estimate is provided.
Importantly, these estimates can be amended up to four years after the end of the relevant tax year, giving you some flexibility once your final figures become available.
You can request your RPSS or annual allowance statement by contacting your pension scheme:
England and Wales – NHSBSA
📧 annualallowance@nhsbsa.nhs.uk
📞 0300 3301 346
Scotland – SPPA
📧 SPPATax@gov.scot
📞 01896 893 000
Northern Ireland – HSC
📧 hscpensions@hscni.net
📞 028 7131 9111
In summary:
If you suspect you may have exceeded the annual allowance, particularly during the McCloud remedy period or in 2022/23, it’s vital to take action. Deadlines for scheme pays are approaching fast, and many members may need to submit an estimate before receiving final statements.
If in doubt, speak with a financial adviser who understands the NHS Pension Scheme and can help you navigate your options with confidence.
The information contained within this article is for guidance only and does not constitute financial advice.