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Free Tool · 2026/27 Rates

NHS Pension Annual Allowance
Calculator 2026/27

Instantly check your pension input amount, tapered allowance and annual allowance charge — updated for 2026/27 HMRC rates.

Standard AA: £60,000 Taper threshold: £260,000 adjusted income Minimum AA: £10,000 Scheme Pays if charge >£2,000
Your Details
Income
iYour NHS pensionable salary for the year ending 5 April 2026. Usually your whole-time equivalent pay. Do not include locum sessional fees paid outside the NHS pension scheme unless pensionable.
£
iYour net self-employment or locum sessional income outside the NHS pension scheme. Used to calculate threshold and adjusted income for the taper.
£
iInclude any dividend income, rental profits and savings interest. All form part of your adjusted income for the taper calculation.
£
Pension Input
iYour NHS pension capital value at 5 April 2025. For the 1995 section: annual pension × 16 + lump sum. For the 2015 CARE scheme: accrued pension × 16. This is usually on your pension benefit statement from NHS Pensions.
£
iYour NHS pension capital value at 5 April 2026. Calculated the same way as the opening value. If you do not have this, AccTek can help you obtain your Pension Savings Statement from NHS Pensions.
£
iThe CPI rate used to uprate the opening value. For 2025/26 the rate applied to the opening value is the September 2024 CPI figure. HMRC used 1.7% for 2025/26 calculations. Enter as a percentage (e.g. 1.7).
%
Carry Forward
iUnused annual allowance from 2023/24. The annual allowance was £60,000 that year. If your pension input in 2023/24 was less than £60,000, the difference can be carried forward. Leave at 0 if unsure.
£
iUnused annual allowance from 2024/25. The annual allowance was £60,000 that year.
£
iUnused annual allowance from 2025/26 (the year just ended). If your pension input in 2025/26 was less than your available allowance, the difference carries forward to 2026/27.
£
Tax Rate
iThe annual allowance charge is taxed at your marginal rate. Higher rate is 40% (income £50,271–£125,140). Additional rate is 45% (income above £125,140). Select the rate that applies to the top slice of your income.
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Enter your details to calculate

Fill in your NHS pensionable pay, pension values and carry forward to see your annual allowance position and any charge for 2025/26.

Quick Answer
What is the NHS pension annual allowance for locum doctors in 2026/27?

The standard annual allowance for 2026/27 is £60,000. This is the maximum your pension can grow tax-free in a single year. Locum doctors with adjusted income above £260,000 have their allowance tapered down to a minimum of £10,000. If your pension input exceeds your available allowance, HMRC charges tax on the excess at your marginal rate — typically 40% or 45% for high-earning locum doctors.

The pension input for NHS defined benefit members is not the same as your employee contributions. It is calculated as the increase in the capital value of your benefits over the year, using the formula: (closing value × 16) − (opening value × 16 × CPI uplift). This can be significantly higher than your actual contributions and catches many doctors off-guard.

2026/27 Key Rates & Thresholds

£60,000Standard annual allowance
£10,000Minimum tapered allowance
£200,000Threshold income limit
£260,000Adjusted income taper trigger
1.7%CPI uplift (Sep 2024, used for 2025/26)
£10,000Money purchase AA (MPAA)
£2,000Scheme Pays minimum charge
31 Jul 2027Scheme Pays deadline (2025/26)

Worked Examples for Locum Doctors

Scenario 1Junior Locum GP — NHS Pay £75k
Pension Input Amount£32,000
Standard Allowance£60,000
Adjusted Income£95,000
Taper Applies?No
Excess£0
✅ No charge — £28,000 headroom
Scenario 2Senior Locum — NHS Pay £130k
Pension Input Amount£68,000
Standard Allowance£60,000
Adjusted Income£165,000
Taper Applies?No
Excess£8,000
⚠️ Charge of £3,200 at 40% — Scheme Pays available
Scenario 3Consultant Locum — Total income £290k
Pension Input Amount£82,000
Tapered Allowance£45,000
Adjusted Income£310,000
Taper Applies?Yes
Excess£37,000
⚠️ Charge of £16,650 at 45% — Scheme Pays election recommended

How the NHS Pension Annual Allowance Works

The annual allowance is the maximum your pension can grow in a tax year before HMRC levies a charge. For NHS defined benefit members, this is not about how much you contribute — it is about how much the value of your pension increases. High salary growth, promotions and additional pensionable service all push the pension input amount higher, often above the allowance even for doctors earning well below the taper threshold.

1

Calculate pension input
HMRC formula: closing value minus CPI-uprated opening value. Both values = annual pension × 16.

2

Check the taper
If adjusted income > £260,000, your £60,000 allowance reduces by £1 for every £2 over £260,000.

3

Apply carry forward
Unused allowance from the three previous tax years can be added to your current year allowance, reducing the charge.

4

Calculate the charge
Any excess above your available allowance is charged at your marginal rate (40% or 45% for most consultant locums).

When You Need to Act

Request your Pension Savings Statement if…

  • Your NHS pensionable pay exceeds £100,000
  • You have had a significant pay rise or promotion in 2025/26
  • You have received a substantial locum sessional uplift
  • Your adjusted income may exceed £200,000
  • You have not checked your annual allowance position in the last 2 years

Consider Scheme Pays if…

  • Your annual allowance charge exceeds £2,000
  • Your pension input exceeds the standard £60,000 allowance
  • You prefer not to pay the charge from your own funds
  • The long-term pension reduction is acceptable against the cash benefit
  • You are approaching the 31 July 2027 Scheme Pays deadline

Speak to a Locum Doctor Accountant

Kishan Kedia ICAI CAMS locum doctor accountant specialist
Kishan Kedia ICAI, CAMS
Locum Doctor & NHS Pension Specialist — AccTek
Kishan has over 20 years of experience working with locum doctors and NHS professionals. He specialises in NHS pension annual allowance calculations, Scheme Pays elections, locum tax returns and Making Tax Digital compliance. For AccTek clients, a full NHS pension review is included as part of the annual service.
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Frequently Asked Questions

What is the NHS pension annual allowance for 2026/27?
The standard annual allowance is £60,000. Doctors with adjusted income above £260,000 have a tapered allowance, reducing to a minimum of £10,000.
How is the pension input amount calculated for the NHS scheme?
The pension input amount for defined benefit members is: (closing pension value × 16) minus (opening pension value × 16 × CPI uplift factor). It is not the same as your contributions and can be much higher.
What is the tapered annual allowance for 2026/27?
The taper applies when threshold income exceeds £200,000 and adjusted income exceeds £260,000. For every £2 over £260,000, the allowance reduces by £1, to a minimum of £10,000.
What is Scheme Pays?
Scheme Pays allows you to ask NHS Pensions to pay your annual allowance charge in exchange for a reduction in your eventual pension. You can elect for Scheme Pays if the charge exceeds £2,000 and your pension input exceeds the standard £60,000 allowance. The 2025/26 deadline is 31 July 2027.
Can I use carry forward to reduce my charge?
Yes. Unused allowance from the three prior tax years (2023/24, 2024/25 and 2025/26) can be carried forward and added to your 2026/27 allowance, reducing or eliminating the charge.
What rate is the annual allowance charge taxed at?
The charge is taxed at your marginal rate. For most high-earning locum doctors this is 40% (higher rate) or 45% (additional rate, applicable above £125,140).
How do I get my Pension Savings Statement?
Request it directly from NHS Pensions online or via your employer. NHS Pensions must issue a statement if your pension input exceeds £60,000. AccTek can help you obtain and interpret the statement as part of your annual review.
Does having a limited company affect my NHS pension?
Your NHS pension accrual is based on your NHS pensionable pay, not your company structure. However, income from your limited company (salary, dividends) counts towards your adjusted income for the taper calculation. AccTek reviews both your company and NHS pension position together.

Get a full NHS pension review with AccTek

Kishan Kedia reviews annual allowance, Scheme Pays and carry forward for all AccTek locum doctor clients as part of the annual service — from £19.99/month.

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