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…
WITH THE THREAT of a second UK lockdown looming, the Chancellor has today sprung into action to unveil his “Winter Economy Plan”.
Measures in Mr Sunak’s Plan include a new Jobs Support Scheme, an extension to the VAT cut for some sectors and support for businesses and workers.
At Shipleys Tax we have gathered the most relevant parts of the plan and summarised them below.
What is the New Jobs Support Scheme?
- The new Scheme, which is available to all small and medium-sized businesses, will see the Government top up the wages of workers forced to cut their hours due to the pandemic. It is intended to replace the somewhat successful employer furlough scheme.
- Employees will get paid for work as normal, with the state and employers then increasing those wages to cover up to two-thirds of the pay they have lost by working reduced hours.
- This means that employees must work a minimum of 33% of their normal hours. For the remaining hours not worked, the government and employer will pay one third of the wages each, meaning that employees working 33% of their hours will receive at least 77% of their pay.
- The idea behind the scheme is that it will enable employers to retain workers on reduced hours, so that employees are not made redundant.
- The Job Support scheme will start from November 2020 and last for six months, taking over from the current furlough scheme, which is due to end on the 31 October 2020.
- It will run alongside the Job Retention Bonus, as well as other initiatives aimed to help get people back into work such as the Kickstart Scheme.
Who is eligible for the Job Support Scheme?
Employees eligible for the Job Support Scheme must be employed to work two-thirds of their normal hours and it is available to anyone who is in employment from 23 September 2020.
How do you apply for the Job Support Scheme?
No details were provided by Chancellor about how the Job Support Scheme can be applied for. At Shipleys Tax we envisage it would work in the same way as the furlough scheme, which would mean that employees would not have to do anything, but instead it will be down to their employer to apply for the scheme.
Autumn Budget cancelled
Some further good news. Yesterday, the Chancellor announced that there would be no Autumn Budget. Many were predicting that the Autumn Budget would involve tax increases (notable capital gains tax) to help pay for Government schemes that were announced at the beginning of the nationwide lockdown in March. Instead, the next budget is now set to take place in spring 2021.
Self-employment income support scheme
For the self-employed, the grant available for those qualifying has been extended.
The 15% VAT cut for the hospitality and tourism sectors has also been extended.
If you are affected by the above and would like more information, please call 0114 272 4984 or email firstname.lastname@example.org.
Please note that we do not give free advice by email or telephone.
TO PREVENT the abuse of Research & Development tax credit relief claims, HMRC are looking to step up their crackdown on unscrupulous companies promoting exaggerated claims.
At Shipleys Tax, we are aware of the many pitfalls of an ill-prepared claim and the issues to avoid and how you can maximise the the tax relief claim.
This was borne out by the recent case of AHK Recruitment v The Commissioners for HMRC in the First Tier tax tribunal where a claim for Research & Development (R&D) was denied due to lack of credible evidence. In particular, the R&D report which was submitted did not give clear evidence as to how the research and development took place. The Tribunal was amazed that no competent professional gave evidence, not even a witness statement. Nor was there any professional representation.
What is R&D?
Research & Development is a significant driver of innovation, economic growth and employment across all regions of the UK.
The R&D tax relief is a very valuable relief. Under the SME scheme, where expenditure incurred by a SME qualifies for relief, the company can claim an extra deduction in calculating its taxable profits. That extra deduction is 130% of the qualifying expenditure, which means that the company obtains a total deduction of 230% (that is the original spend plus the additional deduction) of the original qualifying expenses.
If the company makes a loss for corporation tax purposes, the loss from the R&D deduction can (with some restrictions) be ‘surrendered’ in return for a payment of R&D tax credit. The payable tax credit is then 14.5% of the loss surrendered.
Abuse of R&D claims
Unfortunately, R&D is not a regulated industry and there are no real barriers to entry which has resulted in a tsunami of new overly enthusiastic entrants who exaggerate what should be considered as true R&D within the rules of the scheme. They may have incorrect suggestions as to what might qualify to encourage potential clients to sign up to their commission-based fee engagements.
The consequences of incorrect claims can be significant on the business. Not only will the business need to repay tax and interest, it may have significant tax penalties which may hit cash flow hard.
One underlying issue is that taxpayers are still failing to understand that the UK tax system is inherently “process now” and “check later”. Therefore whilst the business may receive a tax repayment from HMRC, HMRC have a window to enquire into the affairs of the business and this can be extended in some cases to 20 years.
Therefore, it is imperative to ensure that you instruct experienced and credible R&D firms who are real professionals and technically competent, as well as having high ethical standards, as this is a complicated area of tax law.
- The importance of the competent professional and their experience and qualifications.
- With software claims, the advance and uncertainties have to be in the field of software, not the industry it is being used in.
- Concentrating too much on functionality as opposed to advancement in the field of research, and uncertainty in the report.
- Lack of detailed evidence of costs.
At Shipleys Tax we expect to see a significant rise in cases such as AHK Recruitment above. HMRC are stepping up their crackdown on fraudulent R&D claims and have increased resources to tackle tax abuse due to a significant increase in incorrect and fraudulent R&D claims.
HMRC’s consultation on preventing abuse of R&D tax relief for SMEs closed Friday, 28 August 2020.
To talk through your potential R&D claim and how our team of experts might be able to help, please call 0114 272 4984 or email email@example.com.
IN STRIFE AS IN DEATH, tax is never far away it seems. The government has made various support payments available to individuals and businesses to help mitigate the profound effects of the Covid-19 pandemic but there is a sting in the tail. What is the tax position of these payments?
Those self-employed people and business owners who have received a grant during the coronavirus pandemic, do they need to take these into account when preparing their tax returns for 2020/21. Shipleys Tax looks at the lesser known tax impact of these payments here.
Payments under the Coronavirus Job Retention Scheme?
Grants payments made under the Coronavirus Job Retention Scheme (CJRS) for fully furloughed and flexibly furloughed employees are included in the calculation of the employer’s profits. However, they can deduct payments made to employees and associated employer’s National Insurance and pension contributions.
As far as the employee is concerned, grant payments paid over to them are treated in the same way as normal payments of wages and salary. They are taxable under PAYE and liable to Class 1 National Insurance contributions.
Grants under the Self-employment Income Support Scheme
The self-employed, can, if eligible, claim grants under the Self-employment Income Support Scheme if their business has been adversely affected by the Covid-19 pandemic. The first grant could be claimed in May and the second can be claimed in August.
The grants should be taken into account in computing profits for 2020/21, returned on the self-assessment tax return due by 31 January 2022. As they are included in profits, where these exceed £9,500 for 2020/21, Class 4 National Insurance contributions are payable. If profits exceed £6,475, the trader must also pay Class 2 contributions.
Where profits are below £6,475 for 2020/21, there is no obligation to pay Class 2 contributions. However, it can be beneficial to pay them voluntarily to ensure that 2020/21 remains a qualifying year for state pension and contributory benefit purposes.
Various other grants were also paid to particular types of business, such as those eligible for small business rate relief and grants to those in specific sectors, such as those payable to businesses in the hospitality, retail and leisure sectors and to Ofsted registered nurseries.
Where the business operates as a company, the grants should be taken into account in calculating the profits chargeable to corporation tax.
If the grants were payable to a sole trader or unincorporated business, they should be taken into account in computing the profits chargeable to income tax.
If you need assistance regarding the tax treatment of government support grants, please call us on 0114 272 4984 or email firstname.lastname@example.org.