Each year all Type 2 medical practitioners must complete and submit this pension form to PCSE so that they can assess whether the practitioner has paid the correct tiered contributions across all of their GP pensionable posts.
A Type 2 medical practitioner is:
A GP who is formally employed by a CCG under a contract of service (i.e. contract of employment) is an Officer and their contributions and salary are not declared on the self-assessment form.
If you have been on maternity leave for any time during the period for which the form relates, you will also need to complete and submit the maternity breakdown form.
Each year we receive several queries from clients asking about completion of these forms and so here we provide some of the common questions and answers which we hope will be helpful.
When do I need to submit a Type 2 Form after I CCT? (some of the fellows CCT at different times so questions whether this affects when they will need to submit their first form)
First pension year as a salaried GP or other criteria for a Type 2 practitioner. Any type 2 earnings in a pension year (31 March) must be reported even if only a few days, weeks, etc.
How does having sick leave / parental leave impact a Type 2 form?
You must complete the separate tab on the form “authorised leave”. Your tier rate is based on your pay assuming you were receiving full pay but you still only pay contributions on the amount you actually receive.
Thus, for example, your full salary means that you are in the 12.5% tier but you only receive half pay. You would pay contributions at 12.5% of the half pay amount.
What is my pensionable pay when I am on maternity leave?
Please see above note – pensionable pay is the actual pay you receive – the tier rate, however, is based on full pay level.
If you work at multiple GP surgeries as a salaried doctor how does this affect submitting Type 2 forms? (Do you submit separate forms and who do you approach if there is an over/ under payment?)
1 form to be completed and details of each practice needs to be entered in order to bring together the total pensionable pay. You will need to deal with each practice separately when considering under/over payments.
What is the difference between gross pay, actual pay, deemed pay, net pay and pensionable income?
- Gross pay relates to the total earnings before any deductions are made.
- Deemed pay relates to authorised leave such as sick, maternity, paternity or adoption leave.
- Net pay is what is received into the bank account by the salaried GP after deductions (i.e. pension, tax, national insurance, student loan etc)
- Pensionable pay for a Type 2 practitioner includes all pensionable pay from all sources.
How does the recent changes to IR35 impact the healthcare sector?
Each year we receive several queries from clients asking about completion of these forms and so here we provide some of the common questions and answers which we hope will be helpful.
What is pensionable income you input on the Type 2 form and where would you find it? Is this the total gross pay on the preceding March payslip? (How do you ensure that it doesn't include non pensionable pay such as pension refund)
The pensionable pay is on the payslip- each payslip needs to be checked to ensure only the current year’s pensionable pay is entered. OOH income will be found on the GP SOLO and locum income on forms A and B
Other than salaried work, what other employments need to be included on a Type 2 form? (e.g. Out of Hours work etc.)
OOH work, locum earnings, and any Type 1 partner earnings.
How do you resolve underpayments?
If the tiered rate set by the practice is incorrect, you must pay the arrears to PCSE/LHB via the practice. If there are underpayments on OOH, the individual GP must pay the arrears directly to the OOH provider or to the local PCSE team/LHB depending on the local arrangements.
If there are underpayments on GP locum, the individual GP must pay the arrears to the local PCSE team or the LHB
How do you arrange receipt of overpayments? Will this impact on the total pensionable income figure for the following year's Type 2 form?
If the tiered rate set by the practice is too high, the overpayment will be recovered via the practice. If you are still employed by the practice, this can be done via your monthly salary; it is important that year end adjustments are shown separately on the relevant payslip to ensure they are not included in the current year totals.
If there are overpayments on OOH, the individual GP must recover the excess directly from the OOH provider or to the local PCSE team/LHB depending on the local arrangements.
If there are overpayments on GP locum, the local PCSE team or the LHB will arrange to pay the excess to you.
I have contacted my surgery and their employer contribution figure to enter into the Type 2 form is different from the figure that is on the form. Why is that?
The Type 2, when completed by the salaried GP, should reconcile between the actual employee contributions deducted on the payslip and the amount that should have been collected based on the final pensionable pay and tier rate.
The mechanism to actually pay over the employee and employer contributions to PCSE is completely separate to the practice’s payroll systems. The amounts collected are based on the estimate of pensionable pay that will be submitted via the PCSE portal at the beginning of each pension year.
There can be discrepancies between the estimate submitted to PCSE and the actual pensionable pay per the payroll. The role of the Type 2 is to act as a two way reconciliation between the salaried GP and practice and then the practice and PCSE.
The pensionable pay is on the payslip- each payslip needs to be checked to ensure only the current year’s pensionable pay is entered. OOH income will be found on the GP SOLO and locum income on forms A and B
I have missed a year of filling out a Type 2 form. How do I go about ensuring that it is done?
Copies of prior years’ forms are available here. There is also an amnesty form that can cover multiple years. It is always worth checking your PCSE Online portal to check that all relevant years have been approved.
How do you know that what you have submitted is correct?
The form is a Self Assessment form so does rely on the correct information being entered by the GP. Guidance is available online and you can seek advice from a specialist medical accountant. If there are discrepancies between the information submitted relating to the performers listing, PCSE are likely to respond to the submission with a query.
It is always important to make sure that the Performers Listing is correct before submission of the form as it can lead to rejection of the certificates if not correct.
How do you know what is in your pension pot?
The details of your pensionable pay history and pension pot can be found on your Total Rewards statement. There can be issues with accessing this information should your history not be up to date. This highlights the importance of making sure the Type 2 certificates are completed in a timely fashion.
If you require any assistance with the completion or checking of your forms or have any other queries please do not hesitate to contact your MHA healthcare team and we will be happy to help.
Healthcare
Read more about HealthcareRead moreThe details of your pensionable pay history and pension pot can be found on your Total Rewards statement. There can be issues with accessing this information should your history not be up to date. This highlights the importance of making sure the Type 2 certificates are completed in a timely fashion.
