GPs must pay higher costs for late payments on tax returns, HMRC announced following the Spring Statement 2025 delivered yesterday.
Payments that arrive within just 15 days will now face a new 3% penalty, plus an additional 3% where tax is overdue for 30 days, with a further 10% thereafter.
Andy Pow, adviser to the board of the Association of Independent Specialist Medical Accountants, said: “Documents released by HM Treasury reveal increases in late payment penalties for VAT and self assessment income tax, which will apply to GP practices and doctors joining Making Tax Digital (MTD).”
As GP locums struggle for sessions, the Office for Budget Responsibility warned that the cuts to benefits announced in the Spring Statement would affect over three million families. It also estimated that average income would drop by around £1,720 a year in real terms, The Guardian reported.
Dr Richard Fieldhouse, NASGP chair, said: “Self-employed locums are already struggling to earn an income, and we’ve even heard reports from some members that there is ‘no scope to negotiate’ rates in their area.
“With a potential drop in income for many, and cost of living on the rise, many GP locums are already going to struggle to pay their next tax bill on time, now with the threat of heavier fines for late payment.
“See our webinar with Tori Ferguson on how submitting your self-assessment especially early can help reduce your Payments on Account with HMRC. And for any GPs struggling financially, the BMA’s Cameron Fund is an excellent source of help and advice.”