Clear and hassle-free advice for GPs

Doctors

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.

Sections


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.

Why us?

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.

Cost

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.
• Payroll
• 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.

Why us?

• 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 £345 + 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…

Residential property in a company – beware the ATED tax rules

Doctors Shipleys Tax Advisors

MANY PROPERTY INVESTORS are increasingly using a limited company to hold properties for the perceived tax advantages. However, there are certain tax traps which the investor needs to be wary of in these situations.

One of these is the Annual Tax on Enveloped Dwellings (“ATED”) charge. The ATED is an annual tax on certain high-value residential properties that are held within an “envelope”, such as company or a partnership with at least one corporate partner.

The annual tax on enveloped dwellings (ATED) was introduced as part of a package of measures aimed at making it less attractive to hold high-value UK residential property indirectly, i.e. through a company etc, in order to avoid or minimise taxes such as stamp duty land tax (SDLT) on a subsequent disposal of the property.

In today’s Shipleys Tax brief we look into the rates and exemptions you need to know if the ATED tax applies to you and how you can avoid the charge.

The annual tax on enveloped dwellings (ATED) was introduced (to) make it less attractive to hold high-value UK residential property indirectly, i.e. through a company etc, in order to avoid or minimise taxes such as stamp duty land tax (SDLT) on a subsequent disposal of the property.

The Charge

The charge may potentially apply where a property in the UK which is valued at more than £500,000 is owned completely or partly by a company, a partnership with at least one corporate partner or a collective investment scheme (such as a unit trust or an open-ended investment company).

The charge is payable annually in advance. Where a property is within the scope of the ATED on 1 April, an ATED return must be made online by 30 April and the tax for the period from 1 April to the following 31 March must be paid by the same date. The table below shows the rates of ATED that applies for the period from 1 April 2022 to 31 March 2023.

Value of propertyATED (2022/23)
More than £500,000 to up to £1 million£3,800
More than £1 million up to £2 million£7,700
More than £2 million up to £5 million£26,050
More than £5 million up to £10 million£60,900
More than £10 million up to £20 million£122,250
More than £20 million£244,750

Letting exemption

You can avoid the tax charge by claiming an exemption.There are a number of exemptions from the ATED charge. One of these is the letting exemption.

The ATED charge does not apply if the property is let on a commercial basis and is not, at any time, occupied (or available for occupation) by anyone connected with the owner.

You can avoid the tax charge by claiming an exemption.There are a number of exemptions from the ATED charge.

Provided that this test is met, relief will be available. The relief must be claimed through HMRC’s ATED online forms service. If the claim reduces the ATED charge to nil (which will be the case if all high-value residential properties owned by the company are let on a commercial basis), a Relief Declaration Return needs to be completed.

Once this form is correctly completed and submitted, the property is exempt from paying the ATED charge.

If you are affected by any of the issues above and would like more information, please call 0114 272 4984 or email info@shipleystax.com.

Please note that Shipleys Tax do not give free advice by email or telephone.

Giving Gifts – is there a tax penalty?

Doctors Shipleys Tax Advisors

THE NATURE OF a gift is that it is something that is given to some without receiving a payment in return. Consequently, as nothing is received in return it would seem unlikely that making a gift could trigger a tax liability.

However, as we will see in today’s Shipleys Tax brief, in some cases making a gift could land you with tax to pay.

Gift issues

Many make the mistake of thinking that gifting isn’t taxable. Whilst gifts are usually given without receiving a payment, strangely that doesn’t exempt gifts from triggering tax liabilities. There are tax rules that apply to gifting in various circumstances which, unfortunately, can give rise to a capital gains tax liabilities.

Market value

The making of a gift is a “disposal” for capital gains tax purposes. As the disposal is not by way of an arm’s length bargain (i.e., the price in a free market), the disposal proceeds are the market value at the time the gift was made, rather than the amount received by the person making the gift (i.e. nothing). From a capital gains tax perspective, unless the gift is to a spouse and the no gain/no loss rules apply or is exempt from capital gains tax, rather than the donor making a loss equal to the cost of the gift, a gain may be realised instead.

There are tax rules that apply to gifting in various circumstances which, unfortunately, can give rise to a capital gains tax liabilities.

Example

Bella has a painting which her niece has always loved. She purchased the painting many years ago for £100. The artist is currently very popular and the painting is now worth £20,000.

On giving the gift to her niece, Bella is treated as if she had disposed of the painting for its market value of £20,000. Consequently, she makes a capital gain of £19,900. Assuming her annual allowance of £12,300 remains available, she must pay capital gains tax on a gain of £6,800!

Gifts to spouses/civil partners

Transfers between spouses are deemed to be at a value that gives rise to neither a gain nor a loss. If instead of giving the painting to her niece, Bella had given it to her husband Akbar, the deemed consideration would be £100 (the value that creates neither a gain nor a loss) and Akbar would be treated as having acquired the painting for £100. In this situation there is no capital gains tax liability on the gift.

Gifts to a charity

Capital gains tax is not payable on a gift to a charity.

Relief for gifts of business assets

The relief for gifts of business assets allows the capital gains tax that might arise on the gift of a business asset to be deferred by ‘rolling over’ the gain so that the recipients base cost is reduced by the deferred gain. However, while this means that there will be no capital gains tax to pay at the time of the gift, the recipient will realise a larger gain when they dispose of the asset. The relief effectively shifts the liability from the donor to the recipient.

Capital gains tax is not payable on a gift to a charity.

Don’t make the mistake of thinking that gifting isn’t taxable. In some cases, Capital Gains tax can still apply as we have seen above.

If you are affected by any of the issues above and would like more information, please call 0114 272 4984 or email info@shipleystax.com.

Please note that Shipleys Tax do not give free advice by email or telephone.

Spring Statement 2022 – Sunak’s Tax Plan

Doctors Shipleys Tax Advisors

The UK Chancellor today delivered his much heralded Spring Statement. At Shipleys Tax we look at some of the brief highlights.

Basic rate of income tax to be cut to 19p by 2024

  • Basic rate of income tax to be cut from 20% to 19% for the tax year ended 5 April 2024 (to be confirmed)
  • The first cut of income tax rates in 16 years

National Insurance threshold to be raised by £3k

  • National Insurance threshold raised by £3,000 for both Primary Class 1 and Class 4 NI
  • This will further align with income tax thresholds, removing an historic anomaly
  • The threshold at which employees and the self-employed will start to pay national insurance contributions will rise from £9,880 to £12,570 a year.
  • The increase will be implemented from July this year (2022)
  • Employers will benefit too, as the Employment Allowance that offsets Secondary Class 1 NI will increase from £4,000 to £5,000. This will also come into effect from April  2022.
  • Most likely to dampen effects of the incoming Health and Social care levy of 1.25%

VAT on energy saving devices to be cut to zero

  • VAT will be cut to zero on energy saving devices
  • This includes thermal insulation and solar panels, and similar items.
  • Fuel duty was also cut by 5p per litre, effective from 6pm on 23 March 2022.
  • This cut will last for one year, subject to any extension.

If you are affected by any of the issues above and would like more information, please call 0114 272 4984 or email info@shipleystax.com.

Please note that Shipleys Tax do not give free advice by email or telephone.

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  • info@shipleystax.com
  • 0114 272 4984
  • Wharf House, Victoria Quays,
    Wharf Street Sheffield,
    S2 5SY

Contact Shipleys today

Want to know how Shipleys can help you with practical tax planning through innovative ideas? Let’s talk. Call or email us directly and a member of our team will be in touch within 48 hours.

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