Annualisation (T2)
I stopped Type 2 work during the 2022/23 year, do I only annualise the dates worked?
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).
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.
Where can I find the annualisation calculator?
You can find the annualisation calculator on the NHS Pensions website under the section: Information for practitioners and non-GP providers | NHSBSA
Go to the GP tiered contributions and annualisation calculator area.
Tip: NHS Pensions publishes a dedicated annualisation calculator for each pension year, so double-check you’re using the correct one for your year.
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).
In what circumstances do I need to use the annualisation calculator? And when is this not needed?
You need to use the annualisation calculator if you did not have continuous practitioner employment for the full pension year.
For example, a GP who was a Registrar until June 2023 and started a role as a salaried or Solo GP in July 2024 needs to complete the annualisation calculator, a GP who has been salaried for a number of years and retired or opted out of the pension scheme in August 2024 needs to complete the annualisation calculator.
Whereas a GP who was salaried from Apr - Sep 2024 and then was a partner from Oct 2024 onwards does not need to annualise (their tier rate is based on the total pensionable pay from both roles).
A GP who has done any Solo work does not need to annualise , as long as they had a continuous contract for the pension year.
A GP who has only done locum work does need to annualise their income to ensure they have paid the correct tier rate but remember locum only GPs do not submit a Type 2 form.
I have recently become a Salaried GP after being a GP trainee, when do I need to submit a Type 2 form?
You need to complete a Type 2 form for the pension year you became a salaried GP. For example, if you were a Registrar from January 2023 until June 2024 and started a role as a salaried or Solo GP in July 2024, you need to complete a 2024/25 Type 2 form declaring the salaried role only, and complete the annualisation calculator to determine the correct tier rate as you were only classed as a practitioner for part of the pension year.