HM Revenue and Customs (HMRC) are embracing the digital revolution and making fundamental changes to the way the UK’s tax system works. The Government is referring to these changes as “Making Tax Digital” (MTD).
The key elements of MTD are:
Businesses will be required to keep digital records
Businesses will be required to update HMRC with quarterly reports
An end of year submission/annual taxable profit calculation will be required
HMRC are proposing a staged introduction to the new rules, starting for many businesses in April 2018 and completing the roll out in full by 2020.
While health and welfare services are generally exempt from VAT there are some exceptions and although many qualifying institutions providing care or treatment will not be required to be VAT registered, there is a risk that standard rated incomes could be overlooked and a liability to register missed.
The Government has recently accepted the Review Body on Doctors’ and Dentists’ Remuneration (DDRB) recommendations for a one per cent increase to GP contractors’ pay.
Once expenses of running their businesses are taken into account, it said that this equalled a 1.16 per cent increase to the GP contract for 2015-16, which compares to last year’s contract uplift of 0.
As GP practices come under increasing financial and bureaucratic pressure, more and more are considering merging. This is an attractive option for any business, offering potential savings on staff and other costs, increased capacity to achieve targets and provide a broader range of services, and more partners to share the workload.
The latest AISMA Doctors Newsline, Autumn 2014 edition is now available. There are a number of articles which provide food for thought and which may be relevant to you.
Kathie Applebee, a regular contributor on practice management topics, has some advice for practices on keeping it simple when introducing the Friends & Family Test which is due to start on 1 December.
In the medical sector we often come across clients who have problems with National Insurance.
National insurance is payable on most earned income by individuals aged over 16 and under the state pension age. Employees pay class 1 contributions. If you receive a salary above £153 per week, you will pay class 1 national insurance contributions at a rate of 12 percent on your weekly earnings up to £805, with the balance of your earnings above £805 subject to a 2 percent charge.
In February 2014, NHS England confirmed that each area team would be required to undertake a review of all local Personal Medical Services (PMS) contracts, to be completed by March 2016 at the latest.
In East Anglia, 149 out of 283 practices hold a PMS contract, many of which appear to be delivering core services at a higher cost than General Medical Services (GMS) practices.
The latest AISMA Doctors Newsline, Spring 2014 edition is now available. There are a number of articles which provide food for thought and which may be relevant to you.
The lead article discusses the alarming increase in the number of GPs unable to pay their bills. Insolvency practitioner and healthcare accountant Jeanette Brown looks at some of the pressures GPs are facing in relation to their personal financial situation.