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Quilter calls for the extension of NHS scheme pays deadline

4 May 2020

Quilter is today calling on the government to extend the NHS scheme pays deadline in light of the Coronavirus crisis.

The deadline for the 2018/19 NHS Scheme Pays election is the 31st July. In an open letter to the Chancellor, Secretary of State for Health and Social Care and Economic Secretary to the Treasury, Quilter has asked for an extension of at least six months or, better still, an extension to the general NHS Scheme Pays deadline so that members can make retrospective NHS scheme pays elections within the same 4-year time period that is available for those who are able to amend an existing election.

Scheme pays allows savers to settle annual allowance tax charges of more than £2,000 through the pension fund without needing to find cash upfront. While the Budget lifted the ‘adjusted income’ and ‘threshold income’ levels under the Tapered Annual Allowance by £90,000 for the 2020/21 tax year, there is still a legacy of annual allowance issues for many doctors.

Graham Crossley, head of development of Quilter’s Medical and Dental advice business comments:

As they deal with this unprecedented crisis, many NHS staff are working extra hours and are understandably time poor. And even if they did have time it’s absurd to expect that NHS staff will be in mindset to focus on their finances. This is something our specialist financial planning team supporting the medical sectors has found first hand.

“As doctors dedicate their time to the rest of us they are struggling to juggle their time and find room for planning their finances. Doctors are risking their lives and the least we can do is ensure they are not being financially penalised for it.”

Jon Greer, head of retirement policy at Quilter adds:

“We are seeing a number of doctors who are only now realising that they have annual allowance liabilities for historic tax years. As the NHS Scheme Pays deadline has passed for those tax years, doctors have fewer options to settle the annual allowance charge and some are having to resort to take on significant debts.

“Extending the deadline for Scheme Pays would at least ensure all doctors are given adequate time to plan and are not adversely impact by pension tax rules while they are focused on fighting Covid-19.”

For more information contact

Kathleen Gallagher
023 8072 6293 
079 9000 4932
kathleen.gallagher@quilter.com

Michael Glenister
0207 7789 638  
07469 144 535
Michael.Glenister@quilterinvestors.com

Notes to Editors:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform in 2020)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.