Clear and hassle-free advice for GPs
Clear and hassle-free advice for GPs
Shipleys have been using their specialist knowledge in the healthcare sector for over 10 years. We act for GPs practices of all sizes from small single handed practices to larger partnerships and corporates, as well as Pharmacy linked GP practices, health clinics and consultants.
The health industry has seen a surge in growth in recent years, achieved against a back drop of challenges from fundamental reforms to the NHS. GPs need to be proactive with their business model and look to provide more of the advanced and enhanced services on top of essential services to maintain incomes and profitability.
- GPs Principals and Practices
- GP Locums, Registrars and Consultants
- Tax planning services for Doctors
GPs Principals and Practices
At Shipleys Tax we understand the specific needs of general practices and the partners involved. Fundamental reforms to the NHS mean GP practices need to continuously re-position themselves under the new system and be able to devote maximum time to administration of patient care. This is where our team can help by providing specialist knowledge on streamlining accounting and tax matters leaving GPs to concentrate on patient care.
Why do you need a specialist GP accountant?
• Knowledge of NHS general practice and the expert advice we provide can be instrumental
• Understanding how practices are funded (from global sum to QOFs ).
• Be familiar with the GP contract reforms, GMS statement of financial entitlements, PMS contracts and the NHS pension scheme.
• Be up to speed on practice based commissioning (PBC), APMS contracts and the developing primary care market.
• Deal competently and promptly with all taxation matters and with GPs’ superannuation.
We aim to do more than produce the annual accounts and handle the partners’ tax affairs.
Personal service – you will deal with one particular partner and their same support team and not be passed around
Timely – the annual accounts will be prepared to agreed time scales and we will visit the practice to discuss
Prompt – we will deal promptly with routine queries, telephone calls and emails and advise on bookkeeping, cash flow and monitoring partners’ drawings without making additional charges.
Tax planning – we will discuss ways to minimise your overall tax liability and spot opportunities.
We have nationwide coverage and are happy to come and visit you.
What our basic annual fee covers:
• Annual accounts preparation.
• Meeting GPs to discuss draft accounts.
• Partnership tax return and tax computation..
• Advising on projected profits and tax liability.
• Dispensary accounts.
• Partners’ personal tax returns.
• GP certificate of NHS pensionable income.
• Ad hoc email and telephone queries
• Opportunities for tax planning for both business and personal affairs
We also advise on:
• VAT accounting.
• Setting up a limited company for non-NHS or locum income.
• Setting up a limited company social enterprise for PBC/APMS purposes.
• Handling HM Revenue & Customs’ investigation into the practice.
• NHS superannuation
• Specific tax planning strategies for reducing IHT, CGT and Stamp Duty
GP Locums, Registrars and Consultants
We have acted for GP Locums, Consultants and Registrars for many years and understand the needs of the medical profession.
As a GP Locum, Registrar or consultant you have very specific accounting and tax needs which may not necessarily be appreciated by a non specialist advisor.
What does the service include?
• Advising on employed vs self employed status and NIC implications
• Proactive advice on tax allowable business expenses, professional subscriptions and general tax planning for locums
• Advice on employing a spouse
• Preparation of annual Accounts and tax returns for HMRC
• Ad hoc telephone and email advice
As well as providing accounting and income tax advice we can also advise on the following areas:
• Incorporation of your business via a limited company
• Advice on tax treatment of superannuation
• Advice on completing superannuation certificates (GP solo, Forms A&B)
• Inheritance tax planning
• Property tax planning
We have nationwide coverage and act for GP Locums, Registrars and Consultants clients based throughout the UK.
• Save you money – proactive services ensuring you are aware of tax savings
• Knowledge you can rely on – we have a wealth of tax expertise in the healthcare sector
• Planning – ensuring you are aware of tax liabilities and payment dates enabling you to plan your cashflow
• Peace of mind – we have many years of experience in dealing with the tax affairs of medical and hospital consultants
• Help you minimising risk of HMRC enquiry
Our fees start at £295 + VAT
Tax Planning for Doctors
Tax law never stands still and goal posts are always moving. It is crucial that you have the right adviser to guide you through the maze and help reduce your tax bill through legitimate and transparent means.
Shipleys Tax has a number of specialist tax advisers with wealth of experience in the medical sector who can talk to you about the many tax saving opportunities.
We always say the best tax planning is done before a major event in the business so seek advice early on in the lifecycle of a transaction. Some areas to consider:
• Buying or Selling a GP practice property – huge tax saving opportunities both personal and corporation tax (NB: patient lists cannot be sold)
• GP linked pharmacies – most tax efficient trading structures
• Reduce inheritance tax on death
• Reduce stamp duty land tax on buying
• Offshore tax planning advice for certain businesses
• Provide property development strategies
• Use of EIS/SEIS and corporate venture vehicles
• Use of LLPs and corporate partnerships
• Asset protection and preservation of wealth
• Estate planning and succession
Latest news & blogs…
Businesses in the UK now have less than nine months to prepare for wide-ranging new rules requiring them to manage their accounts and submit tax returns digitally.
The government’s long-anticipated and controversial Making Tax Digital regime, hailed as the biggest tax and accounts shake-up in a generation, finally comes into effect in April 2019.
Experts in the accountancy world have warned the changes could catch many businesses off-guard. Shipleys Tax have urged business owners to begin researching and investing in digital reporting software that’s compliant with the new rules.
What is Making Tax Digital (MTD)?
Making Tax Digital for VAT is being brought in by the government as an attempt to streamline and simplify the tax reporting system. Making Tax Digital for business (MTDfb) begins on 1 April 2019 with MTD for VAT. From that date, VAT-registered businesses above the threshold of £85k (currently) will have to keep digital records and submit VAT returns using compatible software.
There will be specific rules for how business will report digitally and the software used to do this has to comply with HMRC’s guidance. Gone are paper records and spreadsheets (to a certain extent), in its place will be digital books and records stored online in the cloud.
This may come as a culture shock for many small businesses who are used to doing it the traditional way.
Businesses that exceed or expect to exceed the VAT registration threshold will need to consider:
· are they exempt from the requirement to file returns electronically under MTD (charities, local authorities, government departments and overseas businesses will not be exempt from MTD for VAT)?
· what records will need to be kept digitally
· what the digital VAT account should look like
· how to submit their digital VAT return in line with MTD requirements
· whether to submit their digital VAT account to HMRC
· penalties for late filing and payment of VAT, and for not keeping digital records or having digital links.
It is also worth noting that the government has plans to roll out MTD requirements for all other taxes in 2020.
What are the key dates to look out for?
· April 2018 – HMRC opened pilot for businesses to volunteer to submit their VAT returns
· Spring 2018 – HMRC launches consultation on MTD for corporation tax
· 1 April 2019 – start of first VAT period where MTD is mandatory
· 7 June 2019 – submission deadline for first monthly VAT returns under MTD
· 7 August 2019 – submission for first quarterly returns under MTD
· 1 April 2020 – MTD mandatory for all taxes (planned)
What can you do now to get ready for MTD?
Reports suggest some businesses have not heard about MTD. There is less than 12 months to go until MTD is implemented, many are still uncertain about the requirements and how specifically these requirements will apply to their business.
HMRC is still publishing further guidance on specific definitions and how MTD will work in practice. However, what businesses can do now is to review existing VAT accounting systems and processes in relation to the preparation of VAT returns.
Our recommended steps
To ensure that your business is ready for MTD, we would recommend the following steps:
1. Review your internal reporting systems, processes and controls. Liaise with your advisers/software providers and internal IT teams to get a view on what they can do to help to get ready for MTD.
2. Consider likely costs and potential disruptions to your business. Agree additional budgets for changing and maintaining your systems, seeking specialist advice.
3. Test the integrity of your data and consider whether your VAT-related data is accurate, current and complete.
4. Consider what information you wish to submit to HMRC and how the API connection will work. Do you need to develop or acquire additional software? Is it easier to outsource the submission of VAT returns to a third party?
Accounts and IT system changes may take 9 to 12 months to review and implement. HMRC advise that failure to meet the necessary MTD requirements could result in penalties although there will be a 12 month grace period (‘soft landing’) after MTD goes live to enable businesses to ensure that they have the necessary processes in place and digital links. It is important therefore that all affected businesses start reviewing their systems, processes and VAT adjustments now.
If you have any queries regarding the above, please contatct us on 0114 275 6292
In most small family trading companies it is not unusual for the husband and wife to own all the shares. Where a family member works in the business they may wish to give them shares in the company as recognition for their input and hard work.
However, giving shares isn’t as easy as it sounds. There are various taxes that need to be considered on a gift of shares to a family member, including income tax, capital gains tax, inheritance tax and stamp duty.
If an employee of a company receives “free” shares, for example, or if you make a gift of shares to a family member who works in the business, an income tax charge could arise on the market value of the shares gifted. If, however, it can be demonstrated that the transfer of shares is for reasons of family or personal relations, the income tax charge may be avoided.
A gift of shares to a family member is also a deemed to be a disposal of shares for capital gains tax purposes. As the gift is being made to a connected party, it is a deemed disposal at market value. In the case of a gifts it is typical that the person making the disposal receives no monies out of which to pay any capital gains tax which may arise (the gift is treated as a sale at market value). This could discourage family members from making gifts as part of any family tax planning mitigation exercise.
Therefore, capital gains tax is potentially payable on any gain arising even though no consideration is paid. However, providing certain conditions are met, it may be possible to reduce the capital gain on the shares gifted to Nil by way of gift relief. This allows the capital gain (and thus any tax liability) which is deemed to arise on gift of the shares at market value to be postponed. It does this by effectively transferring the capital gain to the recipient of the gift. To claim this relief appropriate submissions must be made to HMRC at the right time.
Stamp duty is also normally payable on the issue or sale of shares and is payable by the person receiving or acquiring the shares. However, if the shares are gifted and no consideration is paid, a stamp duty gift exemption relief can be claimed which is likely to reduce the stamp duty costs to nil.
For inheritance tax (IHT) purposes, a gift of shares to a family member would constitute what is known as a lifetime transfer. Based on current legislation, if you survive 7 years from the date of the gift, there should be no inheritance tax consequences on the transfer of shares to the family member. In the event of your death within 7 years of the gift, IHT relief may be available on the transfer providing certain conditions are met. This could also reduce any potential exposure to inheritance tax to Nil.
Before any transfer of shares takes place, we would recommend that you seek professional advice to ensure that the available reliefs are applicable to your particular circumstances and also to ensure that the various conditions for each tax relief are fulfilled.
The advice above is general guide only and does not constitute any advice whatsoever. You must seek professional advice before taking any action.
For more information please contact us on 0114 275 6292 or firstname.lastname@example.org.
Deductibility of receiver’s and legal fees
In a recent case the First-tier Tribunal (FTT) has held that the fees of a receiver appointed to sell properties forming part of a letting business and legal fees in challenging the receivership and claiming against the bank for their actions in relation to the loan were not allowable expenditure under TCGA 1992, s. 38.
The FTT found that both a receiver’s fee and legal fees effectively paid by the taxpayers on the forced disposal of properties were not deductible for capital gains tax (CGT) purposes.
The taxpayers owned ten properties, nine of which were let out. It was decided to consolidate the various related loans in place into a single loan with one bank.
Two of the properties were sold, with the bank’s permission. The taxpayers intended to use the proceeds to reduce the loan. However, the bank did not do this. It claimed that the taxpayers were in breach of the terms of the loan as the reduced rental income dropped to less than a predetermined percentage of the interest.
A receiver was appointed who subsequently arranged sale of the remaining eight properties. The taxpayers incurred various legal fees to prevent the forced sale and subsequently to claim against the bank. The bank also deducted the receiver’s fees from the sale proceeds.
The FTT found that the receiver’s fee on the forced sale of the properties was not wholly and exclusively in relation to the sale as the receiver carried out other tasks. This was therefore not deductible. This follows the decision in the recent case of O’Donnell v HMRC  UKFTT 347 (TC).
The taxpayers argued that the legal fees fell within TCGA 1992 s.38(1)(b) and were incurred wholly and exclusively in establishing, preserving or defending title to, or a right over, the asset. The FTT disagreed; the work to prevent the forced sale and the litigation with the bank were concerned with their rights and liabilities under the loan agreement with the bank. The expenses were not allowable. The FTT suggested that the fees were all in fact of an income nature.
If you need advice with capital gains tax on properties please contact us on email@example.com or call 0114 275 62 92 and ask for a tax consultation.