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Annualisation (T2)

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.

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). 
 

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.
      ​
  • 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).

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.