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Financial Planning. Calderdale Royal Hospital Ian Simmonds Director, Medical Services Ian.simmonds@rsmtenon.com Richard Apps Director, Medical Services richard.apps@rsmtenon.com. Financial planning . Self employed tax and national insurance Expense claims GP Partners

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Financial Planning

Calderdale Royal Hospital

Ian Simmonds Director, Medical Services

Ian.simmonds@rsmtenon.com

Richard Apps Director, Medical Services

richard.apps@rsmtenon.com


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Financial planning

  • Self employed tax and national insurance

  • Expense claims

  • GP Partners

  • NHS Pension Scheme

  • Our clients

  • RSM Tenon medical services


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Self Employed Tax & National Insurance

  • Register with HMRC (Fine system)

  • Decide on accounting period end

  • National Insurance Contributions (NIC)

    • Class 1

    • Class 2 (NICO)

    • Class 4

  • Income tax under self assessment


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Self Employed Tax & National Insurance

  • Tax Return

    • 2010/2011 covers 6 April 2010 to 5 April 2011

    • Filing deadlines

      • On line 31 January 2012

      • Paper 30 September 2011

  • Tax payments – the nasty bit !

    • 31 January and 31 July (poa)

    • Good cashflow initially

  • Mechanics


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Self Employed Tax & National Insurance

Tax Savings

  • A set proportion of net income – 1/3 as a guide

  • Choices

    • Own bank account

    • Spouse bank account

    • Offset mortgage

    • Others – e.g. ISA’s/Premium Bonds

  • Please note self employed earnings should be declared when work undertaken rather than when monies received


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Self Employed Tax & National Insurance

Tax Payments

e.g. commence as a locum in February 2011

  • Taxable 2010/2011 locum earnings of £10k

  • Taxable 2011/2012 locum earnings of £60k

  • Taxable 2012/2013 locum earnings of £80k

  • Assume all tax payable at 40%

  • 2010/2011 10,000 @ 40%

    31 January 2012 4,000

    31 July 2012 --


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    Self Employed Tax & National Insurance

    Tax Payments

    • 2011/2012 60,000 @ 40%

      31 January 2013 Bal 24,000

      31 January 2013 POA 12,000

      36,000

      31 July 2013 POA 12,000

    • 2012/2013 80,000 @ 40%

      31 January 2014 32,000

      Less: POA (24,000)

      8,000

      2013/2014 First POA 16,000

      £24,000

      31 July 2014 POA 16,000


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    Claiming for Expenses

    • Superannuation contributions – more later

    • Professional indemnity insurance & subscriptions

    • Car

      • Home is base for locums

      • Mileage log for business journeys

      • Fixed rate claim (if income < VAT threshold)

      • Business use proportion

      • Surgery is base for Partners

    • General use of home as office (HMRC Amnesty)


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    Claiming for Expenses

    • Others

      • Mobile telephone

      • Internet

      • Courses & training

      • Postage & stationery

      • Computer equipment

      • Medical consumables

      • Spouse salary

      • Others


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    Claiming for Expenses

    • Record Keeping

      • Ease of identification

      • Dedicated bank account (spare)

      • Business credit card

      • Retention of records for ~ 7 years

      • Tax return details

        • Income taxed at source

        • Investment income

        • Personal pension contributions

        • Buy to let properties

        • Share dealing


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    GP Partners

    • Types

      • Salaried

      • Fixed share

      • Equity (possible parity build up)

    • Responsibility for tax – draw gross or net

    • Accounting year end varies

    • Surgery ownership

      • Notional Rent

      • Loans

    • Partnership agreement

    • Current/capital accounts (cashflow funding)


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    NHS Pension SchemeThe Practicalities

    • Superannuation Rates

    • Employers 14% (Locum paid by host PCT)

    • Employees 5%, 6.5%, 7.5% or 8.5% (Paid by Locum)

    • GP Locum Forms (A & B)

    • GMS, PMS & APMS

    • GP principal annual pension certificate

    • GP solo - non practice earnings and OOH’s


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    NHS Pension SchemeThe Practicalities - continued

    • Officer scheme – Final Salary

    • Practitioner scheme – Dynamised career average earnings

    • Locum companies

    • Tax relief on GP pensions

    • Salaried GP Type Two Certificate


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    Engaging an Accountant

    • Background details

    • Money laundering checks

    • Hold a meeting

    • HMRC 64-8

    • Letter of Engagement

    • System of checklists

    • Bookkeeping requirements

    • Regular communication – tax due dates

    • Likely cost – Locum and Salaried GP (tax relief)


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    RSM Tenon medical services

    • RSM Tenon acts for over 400 GP practices nationwide

    • Local Yorkshire and North West team of medical specialists

    • Annual performance review

    • Fixed fees agreed in advance

    • Regular meetings to discuss and resolve current issues

    • Unlimited telephone support

    • No obligation initial meeting


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    Financial Planning

    Calderdale Royal Hospital

    Ian Simmonds Director, Medical Services

    Ian.simmonds@rsmtenon.com

    Tel: 01257 518081

    Richard Apps Director, Medical Services

    richard.apps@rsmtenon.com

    Tel: 0113 2445451

    Sean McLernon Director, Medical Services

    sean.mclernon@rsmtenon.com

    Tel: 01706 355505