Page 143 - Pharmacy Appeals 1/4/04 to 31/3/05

NHS Resolution Annual report and accounts 2021/22

• Revenue from contracts with customers in relation 1.4. Taxation
to indemnity schemes: NHS Resolution receives
NHS Resolution is not liable to pay corporation tax.
contributions for the provision of indemnity cover
Expenditure is shown net of recoverable VAT. Irrecoverable
for the CNST, LTPS and PES schemes. The authorising
VAT is charged to the most appropriate expenditure
legislation for these schemes gives the right to collect
heading or capitalised if it relates to an asset.
these contributions. This is deemed, per the FReM
adaptation of IFRS 15, to constitute a contractual 1.5. Pensions
arrangement between NHS Resolution and its scheme
NHS Resolution offers two pension schemes
members. The period of cover is annual, commencing
to staff, the NHS Pension scheme and the
on 1 April each year (contracts do not span financial

National Employment Savings Trust (NEST).
years). Invoices are raised yearly, quarterly, over
ten months and monthly. Revenue is recognised NHS Pension scheme
in our accounts in equal monthly instalments over The provisions of the NHS Pensions scheme cover past
the term of the yearly contract, as and when NHS and present employees. Details of the benefits payable
Resolution's performance obligations are fulfilled. under these provisions can be found on the NHS Pensions

• Revenue from contracts in relation to professional website at www.nhsbsa.nhs.uk/pensions. The NHS
services: Invoices are raised either yearly or quarterly Pension scheme is a defined benefit scheme, which
as per the contract. Regardless of the timing on is not designed to be run in a way that would enable
raising invoices for payment, we recognise revenue NHS bodies to identify their share of the underlying
in equal instalments over the accounting year, as scheme assets and liabilities. Therefore, each scheme
and when performance obligations are fulfilled. is accounted for as if it were a defined contribution
scheme: the cost to the NHS body of participating in
• Revenue from contracts in relation to training courses:
each scheme is taken as equal to the contributions
We recognise revenue in this category only once the
payable to that scheme for the accounting period.
training has taken place, that being the point at which
NHS Resolution's performance obligations are fulfilled. There are two NHS pension schemes: the 1995/2008
scheme and the 201 5 scheme. The employer
NHS Resolution introduced the Maternity Incentive
contribution rate for the period 1 April 2019 to 31

Scheme (MIS) to support the delivery of safer
March 2023 is 20.68% of pensionable pay for both
maternity care through the introduction of an
the 1995/2008 scheme and the 201 5 scheme. The
incentive element to contributions to the Clinical
employer contribution rate is set through a process
Negligence Scheme for Trusts (CNST).
known as the scheme valuation. A scheme valuation
Where a trust has successfully demonstrated achievement is carried out every four years and it measures the full
against the ten safety actions, it will recover its element cost of paying pension benefits to current pensioners.
of CNST contribution that went into the maternity
The most recent 2016 scheme valuation identified
incentive fund, plus a share of any unallocated
the need to increase the employer contribution
funds. Trusts unable to demonstrate achievement of
from 14.3% to 20.68% (including a levy of 0.08%
the ten actions may be able to recover a lesser sum
for scheme administration) from 1 April 2019. The

from the fund to help them achieve the actions.
expected contribution for 2022/23 is £5.9 million.
As NHS Resolution is not deemed a customer in this
arrangement, the monies received from the scheme
are considered out of scope of IFRS 15. Instead
they are treated as per IAS 1, in that the receipts of
funds are offset against the cost of the scheme.
The scheme was paused for the financial year
2020/21 due to the pandemic as we did not wish
to add an additional burden to trusts responding to
Covid-19 via recording requirements at the same
time. Year three of the scheme was later launched
in October 2020 with collection of funds from
April 2021 with redistribution later in the 2021/22
financial year alongside the final evaluation of the
performance of NHS trusts in delivering the actions.