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Financial Planning

Our team at RSM Tenon specializes in financial planning for self-employed individuals in medical services, including GPs and locums. We guide you through self-employment tax, NHS pension contributions, expense claims, and accounting practices to enhance your financial well-being. From registering with HMRC to managing your tax payments, we provide tailored solutions and support. Contact Ian Simmonds or Richard Apps for comprehensive advice that ensures you optimize your income and comply with regulations.

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Financial Planning

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  1. Financial Planning Calderdale Royal Hospital Ian Simmonds Director, Medical Services Ian.simmonds@rsmtenon.com Richard Apps Director, Medical Services richard.apps@rsmtenon.com

  2. Financial planning • Self employed tax and national insurance • Expense claims • GP Partners • NHS Pension Scheme • Our clients • RSM Tenon medical services

  3. 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

  4. Self Employed Tax & National Insurance • Tax Return • 2011/2012 covers 6 April 2011 to 5 April 2012 • Filing deadlines • On line 31 January 2013 • Paper 30 September 2012 • Tax payments – the nasty bit ! • 31 January and 31 July (poa) • Good cashflow initially • Mechanics

  5. Self Employed Tax & National Insurance Tax Savings • A set proportion of net income – 35% - 40% 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

  6. Self Employed Tax & National Insurance Tax Payments e.g. commence as a locum in August 2012 and prepare accounts to 31 March • Period ended 31 March 2013 locum earnings of £40k • Year ended 31 March 2014 locum earnings of £60k • Year ended 31 March 2015 locum earnings of £80k • Assume all tax payable at 40% • 2012/2013 Period ended 31 March 2013 40,000 @ 40% 31 January 2014 16,000

  7. Self Employed Tax & National Insurance Tax Payments • 2013/2014 Year ended 31 March 2014 60,000 @ 40% 31 January 2014 (2012-13) Bal 16,000 31 January 2014 POA 8,000 24,000 31 July 2014 POA 8,000

  8. Self Employed Tax & National Insurance • 2014/2015 Year ended 31 March 2015 80,000 @ 40% 31 January 2015 24,000 Less: POA(16,000) 8,000 2014/2015 First POA 12,000 £20,000 31 July 2014 POA 12,000

  9. 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)

  10. Claiming for Expenses • Others • Mobile telephone • Internet • Courses & training • Postage & stationery • Computer equipment • Medical consumables • Spouse salary • Others

  11. 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

  12. 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)

  13. Summary – Good Habits Reminder • Register as self employed with HMRC • Save (in a separate account) 35% - 40% of income to cover future tax liabilities • Keep all your receipts • Maintain a mileage log • Use a separate credit card for business expenses • Retain your records for ~ 7 years • Employ a specialist medical accountant

  14. 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) • From 2012/2013 employee rates increase by 2.4% • GP Locum Forms (A & B) • GMS, PMS & APMS • GP principal annual pension certificate • GP solo - non practice earnings and OOH’s

  15. 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

  16. 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)

  17. RSM Tenon medical services • RSM Tenon acts for over 430 GP practices nationwide • Local Yorkshire, Lincolnshire 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

  18. 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

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