New to Partnership payment scheme
Friday, 10 July 2020
The launch of the New to Partnership payment scheme was deferred due to the Coronavirus pandemic, but the NHS has now released the latest guidance.
The new 2020/21 GP contract deal includes the offer of ‘golden hello’ payments to GPs and other healthcare professionals who take up partnership roles for the first time from 1 April 2020.
The number of full-time equivalent GP partners has fallen considerably over the past four years and the New to Partnership payment scheme is a bid to attract new partners into general practice.
Who is eligible for the funding?
The New to Partnership payment scheme is open to healthcare professionals who are eligible to become partners as per the NHS Act 2006, working in general practice. This includes, but isn’t limited to, GPs, nurses, including Advanced Nurse Practitioners (ANP), pharmacists and physiotherapists.
Participants must commit to holding a partnership role for five years and they mustn’t have been a partner in England previously. Partners must also be working a minimum of two sessions per week.
There’s an annual eligibility check and reconciliation process which participants agree to when they apply for the funding.
What funding is available?
Successful applicants will receive a payment of £20,000. Healthcare professionals working less than full-time can apply for the New to Partnership payment scheme, but the payment sum will be calculated on a pro-rata basis.
If the new partner increases or decreases their hours during the five-year term, the payment will be adjusted proportionately to the hours worked, subject to the cap.
General medical services (GMS) and Personal medical services (PMS) practices will receive the funding in one lump sum but it is intended to be passed to the new partner. Successful Alternative Provider Medical Services (APMS) participants will receive the payment in line with the length of the APMS contract.
Any partners who leave the partnership before the end of the five-year term will have to repay 20% of the funding for each year not completed. Our recommendation would be that the lump sum payment is not directly withdrawn from the practice, but is used as the new partner’s initial buy-in fund for their share of the working capital of the practice.
There’s also a training fund of up to £3,000 available to support early partnership skills development. This funding isn’t linked to the number of sessions worked.
Participants would need to select what training they need and start within the first year of accepting the partnership role. They must pay for the training and then claim a reimbursement from NHS England. Reimbursement won’t happen until the partner has been in the post for a year.
Will I pay tax on this income?
The funding will form part of your partnership profits and so is subject to tax and National Insurance, at your marginal rates. However, the funding is supported by a further 20% contribution to tax and National Insurance. The whole amount won’t be taxed on receipt as there is potential for clawback, so an amount equivalent to one fifth will be taxable each year.
NHS England has advised that the income is not pensionable, although this is subject to parliamentary approval, and so there should be no associated NHS Pension Scheme contributions in relation to this income, by the practice or the individual.
How do I apply?
The New to Partnership payment scheme is open to applicants from 1 July 2020. An application form is available at https://www.england.nhs.uk/gp/the-best-place-to-work/ and applications should be emailed to firstname.lastname@example.org
If you’d like any further information, please speak with a member of our healthcare services team. You can find contact details on the Our People section of the Larking Gowen website. Alternatively, call 0330 024 0888 or email email@example.com.