FAQs
Questions doctors ask us most
Straight answers on NHS pensions, tax planning, locum income and student debt. Everything here is general information rather than personal advice — your own numbers decide the answer.
NHS pensions
Most relevant to Consultants & Specialists- Should I ever opt out of the NHS pension to increase my take-home pay?
- Very rarely. The employer contribution, inflation protection and the death and ill-health benefits are difficult to replicate privately. Where the annual allowance is genuinely causing a problem, there are usually better levers than opting out — carry forward, scheme pays or partial measures. We model the numbers before anyone makes that decision.
- What is the annual allowance and why have I been sent a charge?
- The allowance limits the pension growth you can accrue tax-free each year. In a defined benefit scheme, growth is driven by pay rises and service rather than what leaves your payslip, so a promotion or pay award can create a charge without any change in contributions. Carry forward from the previous three years often reduces or removes it.
- Is scheme pays a good idea?
- Sometimes. Scheme pays settles the charge from the pension rather than your bank account, but the deduction grows over time, so the true cost depends on how long until you draw benefits. We compare both routes with real figures before you elect.
- I have 1995, 2008 and 2015 scheme membership. Does that complicate things?
- It changes your retirement ages, your accrual rates and how the McCloud remedy applies to you. Mixed membership is common and entirely workable — it simply needs modelling rather than assumption.
Tax planning
Most relevant to Consultants & Specialists- Should my private practice run through a limited company?
- It depends on how much you draw, whether income can be retained, your spouse's tax position and your pension plans. A company is not automatically better and brings administration and accountancy costs. We model both and work with your accountant.
- Why does part of my income feel like it is taxed at 60%?
- Between £100,000 and £125,140 the personal allowance is withdrawn, creating an effective rate around 60% on that band. Pension contributions, charitable giving and remuneration timing can all reduce exposure.
- How should I plan for payments on account?
- Self-assessment payments in January and July are the most common cashflow shock for newly private consultants and new GP partners. We build the liability into your plan so the money is set aside before the bill arrives.
Locum & additional income
Most relevant to Registrars & Specialty Trainees- What is the most efficient place for my locum earnings?
- It depends on your marginal rate and your goals. Options include additional pension contributions, ISA funding, mortgage overpayment or building a cash reserve for the next rotation. The point is deciding in advance rather than letting it sit in a current account.
- Do extra shifts affect my annual allowance?
- Additional NHS work that is pensionable can add to pension input, and it raises adjusted income for tapering purposes. It is worth testing annually once your total income approaches six figures.
- Will lenders count locum income for a mortgage?
- Specialist lenders generally will, usually looking for a consistent pattern over six to twelve months. Many high street lenders will not. Choosing the right lender at the outset is the whole difference.
Student debt
Most relevant to Junior Doctors- Should I overpay my student loan?
- For many doctors on Plan 2, the loan is written off before it is fully repaid, so overpaying simply hands over money that would otherwise have been cancelled. For higher lifetime earners, and on Plan 1 or Plan 5, the calculation can point the other way. It is a projection exercise, not a rule of thumb.
- Does student debt stop me getting a mortgage?
- It does not block you, but repayments reduce affordability because they come out of net pay. Specialist medical lenders take a more realistic view of this alongside your expected income progression.
- What should I prioritise on a foundation year salary?
- Typically: an emergency buffer, staying in the NHS pension, first income protection while premiums are low, then any deposit saving. Debt overpayment usually comes after all of those.
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