By Simon Misiewicz Article relevant to the tax year 2017/18
Are you looking to set up a GP Practice so that you can start to earn the money you truly deserve?
Are you thinking about setting up a business through your own GP Practice?
You may be thinking that it is time for you to set up your own practice instead of working as a locum. There are clear benefits of being a locum but there are downsides in regards to the amount of money that you can earn. I would argue that locums are self-employed people that only earn if they work, whereas a GP owner can employ other people to earn money whilst they are on holiday. Let’s refer these people as business owners.
If you have private clients as well as NHS clients be sure to keep these separate. In fact, it is advisable to treat these as two separate businesses to avoid conflict of interest and confusion within the NHS. The reason for this is that you cannot charge NHS clients for private work of the treatments that you identify. This is indeed important if you decide, as a business owner, to employe other GPs/locums to carry out some of the work.
A locum may straddle both the NHS framework as well as private work. It is essential that you have strict guidance and contracts in place to deal with such matters. If you do employ locums you will also need to consider the implications of IR35, which I provided more details on in another article here. Our team of medical professional accountants are focused on creating greater revenues for your medical professional business such as GPs, locums and dentists, whilst being tax-efficient.
I have written an article here about setting up a Limited Company that is designed to ensure that you are tax-efficient. Please note that if you have a NHS contract whether that be a GMS or PMS contracts cannot be typically reassigned from your personal name into a Limited Company. It is possible to obtain NHS consent but typically it is rejected. You may also need to consider wealth management points of how you want the business assets to be transferred to your children sooner rather than later to save you IHT.
I have written a separate article here on freezer shares, otherwise known as ABC shares, to help you understand how to set up a Limited Company in a tax-efficient manner now and in the future. To learn more about our accountancy and tax services that will help you make more money and pay less tax in your medical profession please book a time with us at a time that is convenient for you. All you need to do is use the below calendar and answer a few basic questions.