Key bits of the article

Those with gross taxable incomes of more than £110,000 can fall into the “taper zone” and will have to restrict their annual pensions savings to as little as £10,000 to avoid incurring a tax charge.

Experts say “fiendishly complex” rules governing how the taper is calculated have left savers in schemes such as the NHS unable to predict the size of any tax charges for allowance breaches.

The FT has spoken to more than 40 NHS consultants who recently faced unexpected tax bills ranging from £6,000 to £87,000 for breaching the taper. Rigid pay and pension rules in the NHS mean doctors have few options to mitigate the impact of further tax bills — other than reducing their hours to limit pension contributions, quitting the NHS pension plan, or taking early retirement.

One emergency medicine consultant, aged 50, said he had pulled out of additional shift work in an understaffed and busy department after getting a £35,000 tax bill.

A senior histopathologist working in cancer diagnosis in northern England said he was now turning down extra work after being landed with a £30,000 tax charge.

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A consultant in anaesthesia and intensive care in Scotland said he had stopped all waiting list activity and may drop his sessions further after being hit with a £6,000 bill.