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…

HMRC starts furlough fraud checks

Doctors Shipleys Tax Advisors

HMRC have started to open compliance checks into employers’ Coronavirus Job Retention Scheme (CJRS) claims after sending thousands of “nudge” letters earlier this year advising them that they may need to repay amounts received.

In today’s Shipleys Tax brief we look at what this means and what you should do if you are contacted by HMRC. If you have received correspondence from HMRC and require advice on an investigation or to appeal a penalty assessment, you should seek tax advice as soon as possible to understand your tax position and take necessary action.


What is the compliance check or tax investigation?

The compliance check starts by requesting very detailed information on every employee for which furlough monies were claimed. The letters will not necessarily be sent to the employer’s agent, as not many businesses have an agent for employment tax matters in the same way as for their corporation tax/income tax returns.   

The letter gives a short timescale to provide the information to HMRC. If HMRC issues a formal information notice to obtain the data (if it is not provided in response to the informal request, and there is no ‘good reason’ for the delay – this may detrimentally affect the investigation and potentially increase any CJRS penalties charged. 

The compliance check starts by requesting very detailed information on every employee for which furlough monies were claimed. 

The type and severity of the investigation is completely dependent on the facts of any individual case. HMRC have a specialist unit looking into these claims and you safely assume they will link with other employer compliance units to get the full picture.

It is strongly recommended that you consult a tax lawyer as soon as possible to receive detailed advice on how to take control of the situation and negotiate with HMRC.
 
What is CJRS/furlough fraud?

There are many ways in which a business could commit furlough fraud or abuse of the CJRS, for example:

  • Getting a furloughed employee to return to work as a ‘volunteer’ without pay
  • Not paying employees the full amount received from HMRC
  • Failure to inform staff that they have been furloughed
  • Not paying employees the full amount received from HMRC
  • Incorrect calculations and errors in furlough claims
  • Employers making backdated claims in periods in which the employee was working
  • Employers pretending to hire staff shortly prior to the qualifying period to take advantage of the payments.

It is strongly recommended that you consult a tax lawyer as soon as possible to receive detailed advice on how to take control of the situation and negotiate with HMRC.

What happens if you were not entitled to claim furlough?

If you are found to not have been entitled to the grant in the first place, or have used the funds inappropriately, the payments can be clawed back by way of a 100% income tax charge regardless of whether the claim was made innocently or deliberately.

As such, HMRC will be able to assess the tax due (and thereby impose the clawback) within four years after the grant was made in the case of an innocent error, six years if the error was careless, and twenty years if the claim was fraudulent.

In cases of serious fraud, HMRC may involve the police and prosecute. This might be using legislation which allows the indictment of a company for the facilitation of tax evasion even if senior management was unaware of the offence, unless reasonable preventative measures were in place.

Businesses are therefore required to notify HMRC if they know (or discover) that they have received a grant to which they were not entitled. Penalties and interest will apply for failure to notify and to the repayment clawback.

Expert Tax Investigation Advisers

If you need HMRC Tax Investigation advice, we have experts that are available to aid you at every stage of the HMRC investigation process. Members of our investigation team are ex-HMRC and have first-hand experience and knowledge of the internal workings of HMRC. Our team specialises in successfully challenging HMRC decisions and will assist you in every aspect of the investigation.

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.

How to make childcare costs Tax-efficient

Doctors Shipleys Tax Advisors

PAYING for childcare can be expensive. The tax system, however, can provide somewhat of a helping hand. In recent years, there has been a shift away from tax relief for employer-supported childcare and vouchers to a Government top-up scheme.

In today’s Shipleys Tax brief we quickly cover how it works, who’s eligible and how it can benefit you.

Government scheme

The Government operate a tax-free childcare scheme whereby parents deposit money into an account which can be used to meet childcare costs and the Government provide a tax-free top up.

To qualify for the scheme, the parent (and their partner if they have one) must each expect to earn at least £1,853.28 over the next 3 months. This is equivalent to 16 hours a week at the National Living Wage of £8.91 an hour. However, if either the claimant or their partner expect to have adjusted net income of more than £100,000 in the current tax year, they cannot benefit from the tax-free top up.

The Government operate a tax-free childcare scheme whereby parents deposit money into an account which can be used to meet childcare costs and the Government provide a tax-free top up.

Eligible parents can access the tax-free top up by setting up an online childcare account for their child. For every £8 that is deposited into the account, the Government will add a further £2, to a maximum of £2,000 a year (or £4,000 a year where the child is disabled). The funds can be used to provide approved childcare, including that provided by childminders, nurseries, nannies, after-school clubs and playschemes, as long as the provider has signed up to the scheme. The care can be provided until the September after the child’s 11th birthday (or up to the child’s 17th birthday if the child is disabled).

The Government top-up scheme is not available to universal credit claimants, and cannot be used in addition to employer-provided vouchers or employer-supported care.

Employer-supported childcare and childcare vouchers

Where an employee joined their employer’s childcare or childcare voucher scheme on or before 4 October 2018, they can continue to benefit from the associated tax relief while their employer continues to operate the scheme. Childcare vouchers and/or employer supported childcare are tax-free up to the employee’s exempt amount. Where the employee is a basic rate taxpayer or joined the scheme prior to 6 April 2011, the exempt amount is £55 per week. Otherwise the exempt amount is £28 per week where the employee is a higher rate taxpayer and £25 per week where the employee is an additional rate taxpayer. The exemption also applies for National Insurance purposes. Employees only have one exempt amount for employer-supported care and vouchers, regardless of the number of children that they have.

It is also possible for employer-provided childcare and childcare vouchers to be made available under a salary sacrifice scheme without triggering the alternative valuation rules.

Where the employee is a basic rate taxpayer… the exempt amount is £55 per week. Otherwise the exempt amount is £28 per week where the employee is a higher rate taxpayer and £25 per week where the employee is an additional rate taxpayer.

Workplace nurseries

No tax charge arises under the benefit in kind rules where childcare is provided in a workplace nursery. Unlike the exemption for employer-supported care and vouchers, there is no cap on the value of childcare that can be provided tax-free in a workplace nursery. However, there are stringent conditions that must be met for exemption to be forthcoming.

Which is best?

Where a parent could potentially benefit from more than one scheme, they should evaluate the options and can choose the one best suited to their needs. Employees in an employer-supported scheme or employer voucher scheme will need to leave that scheme if they sign up for the Government scheme, and will not be able to re-join the employer’s scheme if they change their minds.

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.

New NIC tax rates – how are you affected?

Doctors Shipleys Tax Advisors

NEWS UPDATE

On 7 September 2021 Boris Johnson announced that NI and dividend tax rates will be hiked to help fund social care, pay for COVID-19 support and help the NHS backlog.

In todays Shipleys Tax brief we look at who will be affected and by how much?

Firstly, NI rates will increase by 1.25% from April 2022. This will apply to both primary and secondary Class 1 contributions, which will increase to 13.25% and 3.25% for earnings up to, and above, the upper earnings limit respectively. Class 4 rates will also increase to 10.25% and 3.25%. The additional 1.25% will be carved out as a separate levy from April 2023 – essentially it will be a new tax.

To illustrate what this will mean for employees, the following table is a useful reference, assuming the current NI thresholds apply:

SalaryCurrent NI billExpected increased NI billChange
£15,000.00£651.84£719.74£67.90
£25,000.00£1,851.84£2,044.74£192.90
£35,000.00£3,051.84£3,369.74£317.90
£45,000.00£4,251.84£4,694.74£442.90
£55,000.00£4,951.84£5,519.74£567.90

Secondly, the dividend tax rates will also increase by 1.25%, i.e. to 8.75%, 33.75% and 39.35% for basic, higher and additional rate taxpayers respectively. This will mean slightly higher taxation for company shareholders extracting income via dividends. However it remains to be seen how tax efficient this route still is compared to other remuneration strategies given the NIC hike above.

If you would like to know how you are personally affected by the above measures and you’re options going forward, please contact us on 0114 272 4984 or email info@shipleystax.com.

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

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  • 0114 272 4984
  • Wharf House, Victoria Quays,
    Wharf Street Sheffield,
    S2 5SY

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