In the March 2020 Budget, the tapering rules were relaxed.
My observation is that this benefited Consultants greatly, but the impact was not so great for GPs.
This is due to the fact that most of a GP’s income is pensionable. For those Consultants who earn a lot of private income, a substantial part of their income is not pensionable.
I have found that most of my GP clients are not tapered to any great degree, whereas many more Consultants are, often all the way from £40,000 to £10,000.
I have tried to demonstrate this using some very simple sample figures – please see download:
I should stress that the new rules do not wipe out tapering. They just mean that fewer people will be affected by it.
Please note that the new rules do not come into play until 2020/21.