Help.. Superannuation & Levy Charges

buster350

Hi All,

I have just taken on a healthcare professional (Dentist) who pays Superannuation. When compiling this persons Tax computation how do I treat the Superannuation payments?

With normal private pension payments you increase the thresholds (tax bands) but do you with Superannuation? also what box does this go on on the tax form as no box seems to fit?

Also how do I treat levy charges this is a set amount per month….?

Thank you :-)

buster350

can no one help with this?

payrollpro

Buster,

I had left this a bit to see what the response would be. I am presuming the payments are into what used to be called the NHS Superannuation scheme, which is now simply called the NHS pension scheme.

Whilst it is an old fashioned term it is stil used in some places, the USS for example, which sounds military but is actually the University Superannuation Scheme. The fact is that this is generally a contracted out occupational scheme and therefore all the tax relief should have been dealt with in payroll under the net tax arrangement.

The practice of extending the basic rate band only applies to personal pension type arrangemments.

I think you need to get more information because I woul dhave expected you to ignore the pension contributions and work from the net taxable pay based on the P60, or to gross back up to full pay and just deduct before working out the income tax.

Any chance of some more information because what youa re describing deos not fit with my normal knowledge of superannuation schemes.

Payrollpro

buster350

Thanks for your reply Payrollpro.

Well now have three dentists all work as self employed they work for different practises. they are not payrolled they just received an income statement once a month which the prac. pays over to them. the income stat shows -

NHS work +
Private work +
Referral work +

Less lab works -
Less Levy -
Less Superann -

equals the payable


As they are self employed they dont receive a P60

hope this helps

payrollpro

What, so the "client" automatically deducts pension contributions from their fees alongside works they have commissioned. The contributions presumably go into the NHS pension scheme, which is reserved for those in the NHS who have an employment contract with an organisation which is designated to be part of the NHS by virtue of the various laws governing the provision of health services.

Self employed, your having a laugh. No wonder HMRC offered an amnesty deal for medical workers. Sorry, that might have been a teensy, weensy bit unprofessional!

I would check with the administrators of the NHS scheme and establish just what the basis is for the acceptance of contributions from those not employed in the NHS. Perhaps they have a separate personal pension scheme facility, or perhaps it is as an admitted body to the scheme, or maybe there is some law which permits this very odd arrangement.

This does not sound right to me because in order for you to be able to allocate the contributions correctly you need to know if they are tax deductible, whether tax relief has already been given in the contibution and claimed directly by the provider and whether this is an occupational, personal pension, stakeholder scheme or what!

My biggest worry though, is that they get monthly payments from the same "client", that fixed deductions are taken for very employment like conditions and that this generates mutual obligations, clearly there is unlikely to be any substitution clauses or practices, use of the "clients" facilities and hence little to suggest real self employment at all. This looks very suspiciously like disguised employment to me and if I was doing a compliance check at the "client" end I think I kbnow what conclusions I would be coming to.

Ian

buster350

ummm yes this is why i am a little stuck too. but as i said three different dentists each of which work for different practises, yet all have the same 'arrangement'!!!!

great now im well stuck lol. Thankfully one of the three have have been working for many many years (the other two are new to dentisty last year) like this and was with one of the countries largest accountancy firms so i might just see how they dealt with it... def an odd on tho.

Monsoon

Hi,

Just to take this off at a tangent:
I've got a possible dentist client and, before I quote and/or take them on, I'm wondering whether there are any other 'quirks' of dentists that make them a specialism, i.e. significantly outside of the norm. This is in a Ltd Co, if that makes any difference.

Thanks

payrollpro

Hey Monsoon,

Is this a possible dentist or a possible client? If its a possible dentist it might explain a few things about the one I go to!

Apart from the disguised remuneration issues, the partial exemption, long running amnesty from HMRC and the appalling record keeping I understand they're a dawdle! Mind you I don't have one and I suspect extracting fees will be a bit like pulling teeth so maybe you will need to polish up your agreements and perhaps brace yourself for a rough ride.

Payrollpro

Monsoon

Thanks PP.... and, the possible is attached to the client, not their status as a dentist!!