What we are currently working on with our Medical Practice Clients.
Personally Administered Items.
Research shows that many practices are under-claiming their Personally Administered Items (PAI). In many cases, the under claim can be worth between 50pence and £2.00p per client on the practice list.
Keith Miller is working with practices and specialist third parties to help ensure they know what they can claim and introduce strategies to ensure they are doing this most effectively.
One practice alone has recently agreed a claim of over £60,000 for items not previously claimed, following a review of the previous year PAI.
Tax Relief on Capital Expenditure in Doctors Surgeries
The rules on claiming capital allowances and reliefs on surgery buildings are complex and many practices are believed not to be claiming the full amount that is potentially due.
In some cases, up to 35% of the cost of the new build can be reclaimable on ‘plant and equipment’ and perhaps even 75% on a refurbishment.
Some reliefs can also be claimed on historic builds, although it is best that reclaimable costs are identified as early as possible so they can be maximised.
Making Tax Digital
Exact details of the requirements under the Government’s ‘Making Tax Digital’ are still not clear although, from April 2018, practices are likely to fall into the rules which will result in a quarterly return having to be made to HMRC within a month of the end of each quarter. At the end of the year, practices will then have ten months to complete the final year-end return.
An extra problem for GP practices is that they will not have accurate figures to give on a quarterly basis. The majority of their NHS income received on a monthly basis is made up of three strands. Not only is income received for the work undertaken during the quarter but there is both income from work undertaken in previous quarters and funds received for work to be undertaken in the future.
Expert accountancy advice from people who understand the issues is going to be essential – as is ensuring you have the correct software to ensure ease of use.
GP Pension Problems
Many GP’s are facing a difficult time in ensuring their Pensions Schemes are working for them in the most beneficial way.
The reductions in lifetime limits on pensions combined with the reduction on the amount that can be put into pension schemes tax efficiently each tax year mean that many Doctors could find that the returns on their pensions are no-where near what was expected as they fall foul of some punitive tax charges.
This is an area where Albert Goodman can help. Not only do they have a financial planning team offering specialist pension advice but also specialist medical practice accountant Keith Miller who undertook Financial Planning Qualifications to ensure he has an extra level of insight necessary to fully understand the complexities in this area.
If you are interested in discussing any of the subject matter from this article, please contact our AISMA member and specialist Medical Practice Partner, Keith Miller on email@example.com.