‘I’m moving abroad after Labour taxed me 70% as an NHS worker’

NHS doctors are being forced to turn down shifts and even move abroad to avoid being taxed 70% as unions warn Rachel Reeves is putting her own targets in jeopardy.

When a doctor earns more than £200,000 a year, their pension‘s annual allowance begins to decrease by £1 for every £2 they earn above this threshold.

As a result, those who earn between £200,000 and £242,500 are taking home less pay despite doing more hours of work, according to the British Medical Association (BMA).

An NHS anaesthetist and critical care specialist who asked to remain anonymous revealed he’s been rejecting extra shifts “for years” because of this.

He told The Telegraph: “Every year, as I approach the annual threshold for pension tax, I stop doing overtime for the NHS.

“This is because if I go over that threshold, I start losing my annual tax-free pension allowance and end up paying about a 70% nominal tax rate.

“I do have to do some overtime when we’re short on the ICU [intensive care units]. But if we put on extra weekend operating lists to clear waiting lists, I’m unable to do them for fear of reaching my annual allowance threshold.

“I’m currently looking at taking a year abroad – partly to minimise my pension tax liability. My job will have to be backfilled by a locum at potential cost to the NHS.

“The nominal 70% tax rate usually only comes in after £200,000. I’m fortunate to have some income from investments, and my basic salary from a 48-hour week is £130,000. So I’m heading towards £200,000 before I do much overtime.

“The £200,000, I think, is a cliff-edge if you get a pay increment and your pension growth is high. When they’re added together to reduce your tax-free amount, you’re in for a big bill.

“I don’t know what my pension growth will be until six months after the year ends and I get a valuation. This means almost everyone wants to steer clear of the £200,000 threshold because they don’t know what their pension growth will be until it’s too late

“As most doctors are risk-averse, they keep well below it. I try to earn no more than £190,000.”

BMA pensions committee chair Dr Vishal Sharmer previously said: “Doctors are now left with little choice but to reduce their hours or turn down extra work and the government’s pledge to offer these additional appointments will be severely undermined.”