Tier rates (T1)
Which tier rate should we note on the end of year payment template if the underpayment spans 2 tier rates for each period?
You should enter the October - March tier rate on the payment template. Please note if a practice makes a Year End payment for a Partner’s pensions contributions, the contributions will be allocated to March 2023 on the Partner’s record.
This means the contributions related to the payment must be included in the October – March tab of the 2022/23 Type certificate.
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.
For 2022/23, my employer didn’t change the rate until November rather than October, what do I do?
PCSE will calculate whether the practice has paid the correct level of contributions for the year when they process your form.
If any adjustment is required in relation to an over or under payment this will be applied to the practice's next contractual statement.
You will need to check separately with the practice if the correct level of contributions has been deducted from your monthly salary via payroll.
How do I determine my tier rate if my income has changed over the year?
If you have been continuous practitioner employment for the full year, your tier rate is based on your total pensionable pay for the year, for example, the sum of all your earnings for the 12 months.
If you have had any gaps in practitioner employment, you need to use the annualisation calculator to determine your tier rate.