The form shows annual NHS pension figures, which are needed to complete tax returns by 31 January 2014, but many dentists are still overdue this information.
Some dentists had less than a fortnight in December to decide whether to pay an HMRC annual allowance charge through the NHS Pensions Scheme Pays option or by adjustment to their 2011/12 tax return.
One of PFM Dental's clients recently received their PSS1 form, confirming they had exceeded the annual pension allowance for the 2011/12 pension year, on the 19 December. With a deadline for action of 31 December and Christmas and Bank Holidays to contend with, this gave the client insufficient time to liaise with their professional advisers and make an informed decision.
With the Scheme Pays deadline missed, NHS Pensions listened to PFM Dental's appeal and has allowed the client to apply for the Scheme Pays method of settling the HMRC charge. This prevented the need for the dentist to produce £20,000 at short notice.
Another deadline is looming. So far, not all dentists have received their 2012/13 PSS1 annual NHS pension figures form. These figures are required for the correct input on the tax return, due by 31 January 2014. Most of these tax returns have already been submitted and the NHS pension figures are now overdue. Dentists breaching HMRC’s annual allowance in respect of 2012/13 pension year will need to instruct their accountant to make a retrospective adjustment before 31 January 2015.
Dentists are advised to ask a suitably qualified dental accountant and financial adviser to examine their individual pension circumstances if this is confusing. The Scheme Pays option is not for everyone so careful analysis is required.