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GP Finance Update – Changes for 2008/09

GP Finance Update – Changes for 2008/09. Jenny Stone, ACA Ramsay Brown and Partners Ramsay House 18 Vera Avenue London N21 1RB Tel: 020 8370 7705 E-mail: Jenny@ramsaybrown.co.uk. Minimum Practice Income Guarantee (MPIG). DDRB announce global sum payments to increase by 2.7% to £56.20

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GP Finance Update – Changes for 2008/09

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  1. GP Finance Update – Changes for 2008/09 Jenny Stone, ACA Ramsay Brown and Partners Ramsay House 18 Vera Avenue London N21 1RB Tel: 020 8370 7705 E-mail: Jenny@ramsaybrown.co.uk

  2. Minimum Practice Income Guarantee (MPIG) • DDRB announce global sum payments to increase by 2.7% to £56.20 • Any increase in global sum will simply reduce the correction payments • Practices with MPIG will therefore not see an increase in core practice funding • Future of MPIG • What does this mean for PMS practices…..

  3. MPIG Example

  4. Extended Hours • Access DES & choice & booking will be replaced with extended hours DES (equivalent to £2.95 per patient) • 58.5 QOF points allocated to extended hours • Extended hrs DES £2.95 per patient • If don’t do extended hours will lose income • However, need to consider costs of offering extended hours e.g. staff costs, costs of keeping surgery open for longer

  5. Changes to Capital Gains Tax • Major reform from 6th April 2008 • Capital gains taxed at a rate of 18% • Indexation and taper relief which would reduce a capital gain abolished • Introduction of entrepreneurs relief for business assets if individual ceasing trade • Entrepreneurs relief will mean business assets effectively taxed at 10% • Entrepreneurs relief can be claimed on more than on occasion up to a lifetime limit of £1m.

  6. Capital Gains Example

  7. Tax Relief on Capital Expenditure • Purchase of fixture, fittings and equipment qualify for capital allowances • Capital Allowances prior to 6th April 08 • First Year allowance of 50% • Thereafter writing down allowance - 25% • Capital Allowances from 6th April 08 • 100% of cost up to annual Investment limit of £50,000 • Writing down allowance – 20% • Cars over £12,000 maximum £3,000

  8. Taxation of Non-Domiciled Individuals • Prior to 5th April 08 • Individuals who are UK resident, but not domiciled in UK, declare overseas income on basis of remittance • From 6th April 08 • Non-Dom individual has been resident in UK for 7 yrs out of past 10 yrs • Declare all overseas income & gains on arising basis • If want to use remittance basis would have tax charge of £30,000 • De minimis limit of £1,000

  9. Tax Return Deadlines 08/09 • Deadline for paper tax returns bought forward to 31st October 2008 • Tax returns filed online deadline remains 31st January 2009 • Automatic £100 deadline if late • Can appeal against penalty of individual if tax paid by 31st January

  10. Superannuation Contributions for 08/09 • Employee contributions increased from 6% • Rate of 08/09 based on 06/07 earnings • Employer’s rate still 14% • Earnings Cap removed for employees cont’b • Earnings cap still applies to GPs have added yrs contracts prior to April 08 and were previously capped

  11. QUESTIONS?

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