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HMRC internal manual

Business Income Manual

HM Revenue & Customs
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Doctors and dentists: superannuation

Although doctors and dentists with a contract for service to the NHS are treated as self-employed individuals, they are eligible to make contributions to the NHS Pension Scheme. Where practitioners are members of the NHS Pension Scheme, they are eligible to receive a pension on the basis of final salary or Career Average Revalued Earnings (CARE).

Where the practitioner is an employee, they will make a superannuation contribution and the Primary Care Trust (PCT) will make a contribution.

Where a practitioner is self-employed, they are responsible for making both the employee contribution and the employer’s contribution. This practice started in April 2006. Prior to then, the NHS would make the employer’s contribution on behalf of the practitioner. In theory, the payments made to practitioners have been uplifted to cover this increase in superannuation costs.

Superannuation payments are not allowable deductions in computing trading profits. As payments to registered pension schemes are made net of basic rate Income Tax, additional relief is provided by extension of the basic rate and higher rate band.

The superannuation contribution is disregarded for the purposes of determining whether pension contributions exceed the annual allowance. For more information on contributions to pension schemes, see the Registered Pension Schemes Manual (RPSM00200000 onwards).