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Tax implications of partnership vs salaried GP

13th March 2013 by Liz Densley

So if you are ready to settle down in one practice, what are the pros and cons of partnership vs salaried GP in tax terms?

As a salaried GP you will be taxed under PAYE, so you will only need to complete a tax return if you have other untaxed income, or income subject to higher rates of tax that is material. You do still have a duty to notify the Revenue if PAYE has not deducted the correct amount of tax. You also need to remember to make a claim for professional subscriptions if they are not met by your employer.

For your pension you will need to complete the fairly simple Type 2 practitioner certificate at the end of each year. Often the practice manager or partnership accountant will help you with this if you are unsure.

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