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Annualisation (T1)

I was a partner for the first 3 months of the 22/23 financial year. Does the amount of pensionable pay to determine the rate I pay include other earnings in the first 6 months?

Yes, income from all practitioner posts needs to be included to calculate the correct tier rate. See https://www.nhsbsa.nhs.uk/member-hub/information-practitioners-and-non-gp-providers for guidance on completing Type 1 form and also guidance on the 2022/23 annualisation calculator.

Where the GP provider is a partner in two practices, how do we record annualised earnings and correct tier rate as the chances are based on one certificate the rate is different to if we base on two practice's profits?

If you were a partner at multiple practices with a GMS, PMS, or APMS contract, you must submit a Type 1 form for each practice. You need to include pensionable income from all practitioner posts when calculating your Tier Rates.  See https://www.nhsbsa.nhs.uk/member-hub/information-practitioners-and-non-gp-providers for guidance on completing Type 1 form and also guidance on the 2022/23 annualisation calculator.

I opted out of the pension scheme part way through 2022/23 year, do I only annualise until the date I opted out?

You need to enter the start and end date of each employment you had in 2022/23 in the annualisation calculator to calculate the appropriate tier rate(s). 

I retired during the 2022/23 financial year, how do I annualise that?

If you retired during the 2022/23 financial year , you need to enter the date of your retirement in the annualisation calculator.

When we talk about annualising income, does this mean half yearly profits need to be calculated separately as the profits available will be annual?

Please see the Type 1 End of Year guide, page 9 discusses apportioning income. You will also find information about the tier rate split on page 4.

Do I need to complete the annualisation calculator?

You need to use the annualisation calculator to determine your tier rate for the pension year if you did not have continuous practitioner employment for the full pension year.
 
Here are some examples of where you do need to annualise:

  • Registrar to Salaried/Solo GP:
    • if you were a Registrar until June 2023 and started a role as a salaried or Solo GP in July 2023, you need to complete the annualisation calculator.
       
  • Salaried GP who retired or opted out:
    • if you have been a salaried GP for a number of years and retired or opted out of the pension scheme during 2023/24, you need to complete the annualisation calculator.
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  • Locum Work:
    • if you have only done locum work, you need to annualise your income to ensure you have paid the correct tier rate. However, locum-only GPs do not submit a Type 2 form.

 
Here are some examples of where you do not need to annualise:

  • Salaried to Partner with no gaps:
    • if you were salaried from 1 April to 30 September 2023 and then became a partner from 1 October 2023 onwards, you do not need to annualise. Your tier rate is based on the combined pensionable pay from both roles.
       
  • Solo Work:​
    • if you have done any Solo work and had a continuous contract for the pension year, you do not need to annualise.
Where can I find the annualisation calculator?

The annualisation calculator is available on the NHS Pensions website 

Information for practitioners and non-GP providers | NHSBSA

Go to the GP tiered contributions and annualisation calculator section.

Remember NHS Pensions publish a dedicated annualisation calculator for each pension year, so make sure you use the correct calculator. 

On the calculator, should SOLO income be noted as Locum or Type 1 or 2?

Solo should be recorded on the calculator as Type 2 (Locum is only for income you have pensioned using Locum A&B forms).