GP finance experts have assured doctors that headlines about hitting high-earners will bypass the majority of general practitioners.
Both the Times and Telegraph warned of a ‘tax raid’ on GPs if the Chancellor introduced a levy on limited liability partnerships (LLPs) in the autumn budget on 23 November.
Anna Tyler at independent specialist medical accountant Honey Barrett told NASGP: “The predicted national insurance style charge to Limited Liability Partnerships (LLPs) appears to seek to equalise the tax system by aligning LLPs with other business structures.
“This is a fast-changing proposal at present, and likely for debate, but salaried GPs and locums who work for limited entities or are self-employed should be reassured that they are unlikely to be impacted by this specific proposal.”
GP partnerships are unable to hold GMS or PMS contracts if the partnership has a LLP.
After discussing speculation on proposals to tax LLPs, Robert Peston tweeted a clarification that GP partnerships were not typically set up in this way.
Dr Richard Fieldhouse, NASGP chair, said: “While scare-mongering headlines about GP taxation inevitably grab attention, it is discouraging that this focus distracts from the real financial crisis facing our profession. The fundamental workforce model is broken, leading to a ridiculous paradox where practices report shortfalls yet many highly skilled sessional GPs face widespread un- and underemployment.
“Three in four sessional GPs worry about unpredictable income or job security, and 56% report unused clinical capacity. This severe instability is causing many GPs to question their career choice.
“NASGP is actively speaking out on this issue, advocating for urgent funding and the removal of restrictive red tape from ARRS. We’re currently collecting evidence for the 10 Year Health Plan Community Engagement consultation, emphasising the critical need to value and support the flexible GP workforce who bring essential insight and stability to the NHS.”