By: 2 August 2017
Money Matters: Are you paid what you should be?

Money Matters Simon Bruce, CEO of Cavendish Medical, on the pay slip mistakes that could also impact your pension

We have recently uncovered several cases where consultants are on the wrong pay threshold of their NHS consultant contract. This often happens when a new client comes to us for help and as part of routine financial checks, we discover all is not as it should be.

Those affected are then able to seek salary rebates of tens of thousands of pounds. One consultant had been on the wrong pay level for over eight years leading to an arrears payment claim of £75,000.

As well as substantial backdated pay, the consultant’s pension income in retirement will increase by more than £4K per year, plus the capital value of his NHS pension will be increased by £100K.

Doctors’ pay scales are complex and mistakes can be easily missed by busy medical professionals getting on with the day job or financial advisers not well versed in NHS pay regulations.

The issue is that the consultants are missing out on their deserved income and could also face grave consequences with their pension contributions. As we know, there are now harsh tax penalties for excess annual and lifetime pension savings. If you are on the wrong pay scale, your pension will be greater than projected and could result in hefty tax payments.

In this case, the consultant saved £34,500 in tax liabilities by rectifying the mistake sooner rather than later.

Are you sure your own affairs are correct?


Simon Bruce is CEO of Cavendish Medical – specialist financial planners for senior medical professionals in the NHS or private practice. For a second opinion on your finances, please contact us on 020 7636 7006.

The content of this article is for information only and must not be considered as financial advice. Cavendish Medical always recommends that you seek independent financial advice before making any financial decisions. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor. The value of investments and the income from them can fluctuate and investors may get back less than the amount invested.