News Bulletin

Guide to practice accounts: How profit is allocated to the partners

Practice profits are normally divided into two categories – a top slice from income earned by individual partners and the remainder, the pool of profit in which all partners share. By Liz Densley.

The top slice is known as the pre-shares or prior shares. The partnership agreement should highlight which items of income belong to […]

By |Blog, News Bulletin|Comments Off on Guide to practice accounts: How profit is allocated to the partners|

Paying out an outgoing partner

Many GPs get confused as to how to calculate the amount due to an outgoing partner. In a recent case a GP believed that he was entitled to his Partners Current or Capital Account together with his share of the stock of drugs and the value of the furniture and equipment.
Let us be clear […]

By |Blog, News Bulletin|Comments Off on Paying out an outgoing partner|

PMS review

We have recently surveyed GP practice accounts, and for 2012/13 we have identified the basic global sum per patient to be as follows:-

GMS £66.78
PMS £76.32

To be clear, the GMS figure includes the MPIG and is stated after deducting opt-outs such as out of hours. The PMS figure is stated after transferring items to the […]

By |Blog, News Bulletin|Comments Off on PMS review|

HSCIC survey of GP earnings

The HSCIC recently published their survey of GP earnings for 2012/13. Whilst the numbers themselves produce the headlines, they make a rather striking observation which catches the eye – “In general, average income before tax decreases with increased practice size”.

The implication is the larger the practice the more difficult it is to manage, and […]

By |Blog, News Bulletin|Comments Off on HSCIC survey of GP earnings|

The nominated partner for tax

A “nominated” partner must sign the Partnership Tax Return on behalf of all of the partners before submission to HMRC. This may not be an honour as the Partnership Tax Return will normally contain the personal expenses of the partners together with their private medical income. Accordingly, in the eyes of HMRC, the nominated […]

By |Blog, News Bulletin|Comments Off on The nominated partner for tax|

The MPIG phase out – what it means to you

The Minimum Practice Income Guarantee (MPIG) was introduced in 2004 in perpetuity to protect practices from suffering a significant fall in income by relying solely on the Carr Hill formula to calculate the Global Sum. Many commentators at the time rightly suggested that this demonstrated that the Carr Hill formula was flawed in that […]

By |Blog, News Bulletin|Comments Off on The MPIG phase out – what it means to you|