McCloud rollback statements and NHS Cost Claim Back Scheme – reclaim up to £800+VAT of accountancy fees relating to correcting your Tax position as a result of McCloud
We’ve been talking about McCloud for a long time now…but we are finally starting to see rollback calculations being issued now.
Recap on McCloud – what is it?
‘McCloud’ was the court case, and is now the commonly referred to name, for the remedial actions surrounding the discrimination that some members of public service pension schemes were presented with while transitioning to the ‘new’ pension schemes (the 2015 scheme in the case of NHS Pensions).
Who does it affect?
Eligible NHS Scheme members (broadly, those in pensionable service on or before 31 March 2012) with scheme membership accrued between 1 April 2015 and 31 March 2022 (so, 7 years’ worth) put back into the ‘old’ legacy schemes. This is called ‘rollback’.
The rollback will have an impact on many things, such as:
- Pension benefit entitlement
- Contribution tier rates and associated tax relief, for some (particularly GP Practitioners who have been subject to the 2015 scheme’s ‘annualisation’ rules)
- Pension scheme ‘growth’ and annual allowance charges, and previously submitted scheme pays elections
- Lifetime allowance charges (for those affected members who took their pension before 6 April 2023)
- Ill-health retirement benefits and death in service benefits, for relevant scheme members who have / who’s family have been entitled to these benefits
When will NHS Pensions be releasing calculations?
We are now starting to see (as at the end of August 2024) Total Rewards Statements which have been adjusted for the McCloud rollback.
How can you tell if the statements have been updated?
If McCloud applies to you, and rollback has been applied then your Total Rewards Statement should show:
- The old scheme benefits (1995/2008) have been calculated up to 31/03/2022, and
- New scheme (2015) benefits from 01/04/2022 to 31/03/2023 for practitioners, or 31/03/2024 for officers
In due course, you should start to see Pension Savings Statements which show adjusted figures as well. There will be rollback statements (for earlier years) and statements either made up to 2022-23 for practitioners, or 2023-24 for officer members. These are expected by the end of October 2024.
Cost claim back scheme – up to £800+VAT towards accountancy fees in relation to McCloud
If you are affected by McCloud and need help with your Tax position, HMRC have been developing a ‘Digital Service’ via which adjustments can be made. Additionally, the NHS is offering a ‘Cost Claim Back Scheme’ whereby they will reimburse up to £800+VAT for accountancy fees in relation to getting help with correcting your Tax Position via HMRC’s Digital Service. You can find more information about this, and a link to the claim form here:
https://www.nhsbsa.nhs.uk/public-service-pensions-remedy-mccloud/nhs-cost-claim-back-scheme
So, if you are affected by McCloud, and you need help correcting your Tax Position as a result, get in touch and contact our team of specialist medical accountants on 01424 730345 or email doctors@honeybarrett.co.uk and they will be happy to help.
