Services tailored to you...
With over five decades’ experience serving a diverse range of clients in the South West, we possess an unbeatable depth of knowledge across a wide range of industry sectors.
Our specialist partners and teams can provide expert advice on everything from farming and agriculture, to military tax allowances. We’re here to help you make the most of your planning opportunities so that you can grow with confidence.
The McCloud remedy addresses issues arising from changes to public sector pension schemes that occurred during reforms in 2015, ensuring eligible members receive the better of the benefits under either legacy or reformed schemes. You’re likely affected if you were an active member of the NHS pension scheme on 31 March 2012 and either remained active or rejoined before 1 April 2015 (primarily those with membership in the 1995 and/or 2008 NHS pension schemes).
Remedial Pensions Savings Statements (RPSS)
All affected members should have received a Remedial Pensions Savings Statement (RPSS) by October 2024. However, the NHS Pensions Agency was unable to meet this deadline, and statements are still being issued over the coming months.
Many individuals will not have complete pension records due to issues with pension certificates not being processed by PCSE. Until these records are updated, the NHS Pensions Agency cannot issue accurate RPSS documents.
What you need to do
Step 1: Verify Your Pension Record
Check your pension record is up to date by logging into your NHS Pensions portal. Ensure all employment periods and salary details are correctly recorded.
Step 2: Register with the NHS Pensions Agency
If you expect to be affected by McCloud but haven’t yet received a RPSS, you can register with the NHS Pensions Agency using the McCloud notification request form.
Step 3: Calculate Your Tax Position
Once you receive your RPSS, you have two options:
Self-Assessment: Use the HMRC calculator found online. Please note that you may need to locate your tax records back to 2010, and the calculator requires detailed information that can be complex to complete.
Professional Support: Contact your accountant to complete the calculation for you. This is often the more practical approach given the complexity involved.
Professional Fees and Compensation
Professional fees for completing the submission can be claimed back through HMRC’s compensation scheme (up to £1,000 per submission to HMRC).
Fees must be paid upfront and then reclaimed by the individual. The compensation cannot be claimed directly by professional advisers on your behalf.
The McCloud remedy represents a significant adjustment to public sector pensions, and proper professional guidance can help ensure you receive the full benefits you’re entitled to while managing any associated tax implications effectively.
If you need assistance or have any questions about the potential tax implications, please contact our team to discuss how we can support you through this process.