MFF Client Newsletter Autumn 2021

news Autumn 2021

+ Budget: No extra tax to pay on McCloud remedy benefits As part of the Budget announcements, HMRC has declared that doctors receiving an increase in benefits as part of the ‘McCloud’ remedy will not be liable for extra tax charges.

policies for the year ahead, states that NHS pension scheme members will be exempt from tax charges arising from increased benefits awarded to them as compensation.

The McCloud remedy sets out how those deemed to have suffered ‘age discrimination’ by being moved to the 2015 NHS pension scheme will be compensated in the future. Affected members can choose to take remedial benefits from their original pension scheme or from the newer 2015 scheme but will not have to make that decision until retirement.

Although the full details have yet to be revealed, it has been stated that doctors will be able to ‘protect’ their additional pension benefits from the tax-free savings limit known as the lifetime allowance. They will also be subject to an ‘additional’ annual allowance to ensure their compensation benefits do not generate a breach of current yearly pension growth limits.

The latest news, announced as the chancellor revealed his fiscal

The new measures are due to come into effect from 6 April 2022.

Medical Family Finance News Autumn 2021

+ NHS Pension Contributions One week before the Budget, the government announced yet another consultation into the NHS pension.

members would therefore pay reduced pension contribution sums in the future.

Under new proposals, pension contribution levels will be changed when all members begin to build up benefits in the 2015 scheme from April 2022. The number of different levels of contributions is set to decrease. Going forward, the highest contribution tier would be lowered to 12.5 per cent rather than the current 13.5 and 14.5 per cent.

The government said the move was ‘to ensure that the costs and benefits of the scheme are more evenly shared among members’.

Doctors’ contribution rates would be based on pensionable pay rather than their notional whole-time equivalent pay. Part-time

Comment: Paul Hart, Director

The consultation ends on 7 January 2022, with plans to restructure the member contribution tiers over 2 years from 1 April 2022.

To add your views to the consultation, please visit http://www.gov.uk/government/consultations/nhs-pensionscheme-proposed-changes-to-member-contributions

begin to build benefits from the 2015 Pension Scheme from April next year which will add another layer of complexity.

There will be important decisions to take and the choices you make now can have an impact on your income in the years to come. For this reason, it is imperative to ensure you are as informed as possible about your current position and that all your records have been verified.

Many of you should have received your annual pension statements from the NHS Pensions Agency. In our experience, this is not always the case so please do request your copy if you do not already have it to hand. NHS Pensions can be contacted on 0300 330 1346.

Yet again we are witnessing substantial changes to the rules and regulations surrounding the NHS pension and the tax you need to pay because of it.

With many senior doctors already choosing to retire early rather than be penalised for working extra shifts or longer hours, we could be thankful that finally some of the latest proposals could be beneficial.

The problem is that every amendment leaves individuals further and further confused as to how best to navigate the minefield.

The McCloud remedy already meant unpicking the pension calculations of the last seven years. In addition, all doctors will

+ Client loyalty programme Congratulations to Dr Ronald Doctor who wins our latest loyalty programme prize. Ronald, who is also featured in our newsletter this issue, has won a professionally written and published biography.

All clients recommending four colleagues or peers who contact one of our advisers will receive a biography package from Dragons’ Den entrepreneurs Story Terrace.

Many thanks to Ronald and every client who is able to introduce us to more doctors needing our help.

Medical Family Finance News Autumn 2021

The Agency must issue statements to individuals breaching the standard annual allowance for tax-free pension savings (£40,000).

However, it does not contact those breaching the tapered version of the allowance which can be as low as £4,000 and is much more likely to apply to higher-earning doctors than the standard rate.

Every year we see statements containing significant errors so it is important to get them checked by someone with experience of the NHS pensions and pay.

Please do contact your adviser if you have any queries.

+ Interview with Dr Ronald Doctor I specialise in forensic psychotherapy and worked for a while with patients who had committed serious offences in secure units or prisons.

How did you cope with the impact of Covid on your practice?

I transferred my work onto Zoom, which works well for academic work and patients.

I found that communication between myself and others took a little time to get used to on Zoom, but once you’ve realised it’s just different, it becomes the norm. During the pandemic, I had patients who went home to their original countries in Europe and Asia. This period has introduced the idea that you can do therapy on the phone or online.

Zoom has certainly helped with a work / life balance, and I like it. I live in central London, but I like being able to consult from home and cycle more than in the past.

Dr Ronald Doctor is a Consultant Psychiatrist in Psychotherapy at West London NHS Trust, a Fellow of the British Psychoanalytical Society and member of the British Psychotherapy Foundation. He is a member of the Board of the International Association for Forensic Psychotherapy.

When did you realise you wanted to be a doctor?

Well with my name, there was very little else I could do! I went for career counselling at 17 or 18 and because I was interested in maths, and I found it easy, they suggested I became an accountant. Looking at other people’s tax returns for the rest of my life did not appeal. I started looking at medicine and was told that to obtain a place at medical school, they only look at your maths grade, so I thought I could get in.

While at medical school, I found myself becoming interested more in psychology than biological medicine. In my second year, I did a research project with psychologists on the Big Buddy programme, an American scheme where you befriended troubled children and helped them with counselling.

My schooling and medical school were in South Africa, and I came to England in 1984, which was quite a challenging time in South African history, probably six months before the uprising started. I interviewed for psychoanalytical training at the Institute of Psychoanalysis and got in. I came to London with my wife and two small children.

Are you still practising?

I have ‘retired and returned’ but still working five days a week. My NHS work is in psychiatry and psychotherapy and my private practice is in psychoanalysis. I enjoy the variation between the two. The NHS work keeps me involved in the training of junior doctors and aspiring psychotherapists.

Medical Family Finance News Autumn 2021

Do you enjoy your writing?

I have edited two books; Dangerous Patients; psychodynamic approach to risk assessment and management (2003) and Murder; a psychotherapeutic investigation (2008). I am not that disciplined when it comes to writing but I do enjoy it; it helps to have a deadline. In the lockdowns, I had more time to write papers and another book is on the way, which will probably be published next year.

My books are based on case studies of patients so I must gain permission in order to publish the papers. That can be a tricky business, but I have been able to anonymise the patients. They are often more amenable than you realise. Often the cases I write about are already covered in the newspaper or public sphere.

Is it hard to watch or read crime fiction?

I enjoyed Breaking Bad – because it’s beyond any reality I know – but not so much The Sopranos which everyone else loved, that was too close to home.

+ Interview with Dr Ronald Doctor continued I do not find it difficult to ‘switch off’. I don’t bring my work home with me – unless my wife asks me about it, I don’t want to rehash it all again so leave it in the office.

I have taken to cycling a lot recently and do so whenever I can. I also go the gym, I swim and I run every week. I was considering running another half marathon but need to think about my knees.

I’ve done a few already and don’t want to overdo it.

I love my job. The plan B to become an accountant would not

have worked plus I find it depressing every time I go to see my accountant! I have four grandchildren which also keep me very busy. It’s good that I keep working otherwise I would become a permanent nanny or babysitter!

Ronald Doctor’s publications are available here: https://www.amazon.co.uk/Dangerous-PatientsPsychodynamic-Assessment-Psychotherapy/dp/1855752972 https://www.amazon.co.uk/Murder-PsychotherapeuticInvestigation-Psychotherapy-Monograph/dp/0367325632

+ Insurance update Residential: A recent study found that 82 per cent of UK properties are currently underinsured. The most common reasons for this are stating an incorrect ‘Reinstatement Value’. This is the amount it would cost to rebuild a property if it was destroyed and is different to the market value. Another issue is that the contents cover of the home or rental property is too low. Both problems could cause unnecessary stress in the event of a claim.

to law enforcement agencies that valid motor insurance is in place.

Motor: The European Commission has announced that there is no longer a requirement for UK drivers travelling to EU countries to carry a Green Card. This is an international document that demonstrates

If you would like further help with any aspect of insurance cover, we recommend brokers Coversure who can be contacted on 0207 998 0102.

Since Brexit, all UK-registered vehicles have been required to carry a Green card across the EU by law but this rule was quashed in August. This is welcome news for those looking forward to European travel as restrictions ease. It is also a good idea to check whether your motor insurance policy covers travel in the EU anyway.

+ In brief Staff news We are delighted to announce that one of our founding staff members, Paul Hart, has become a director of Medical Family Finance. Paul has a wealth of experience in helping our clients to reach their financial goals and we know from your feedback that he is highly valued for his timely and accurate advice.

Growing team We would also like to introduce two new members of our team. Daniela Bunea (left) joins us as assistant financial planner and Marie Jean-Pierre as an administrator.

He has helped to ensure the success of MFF since our inception and also played an enormous part in guiding the staff during the last challenging 18 months. Paul will continue to work directly with his clients and looks forward to seeing more of you in person in the months ahead.

Medical Family Finance 020 7252 5765 Medical Family Finance News Autumn 2021

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