Doctors’ Update
The pressures on GPs’ profits are continuing.
Like any other business, expenses are increasing, particularly energy costs. Inflation generally is now 4.4% per annum and could increase to 5% by the end of the year.
Little comfort can be gained from the proposal of a 2.7% Global Sum uplift, inadequate in itself to counter increasing costs, but with an equivalent cut in Correction Factors from October for the 90% of practices which rely on MPIG, it is clear that GPs are facing more financial uncertainty.
Cash flow could become a problem, with lower profits but higher superannuation contributions since April of this year. GPs who are used to retaining minimal funds in their practice should carefully consider their level of drawings.
Hospital consultants with private medical practices are being targeted by HM Revenue & Customs in connection with the level of their claims for motor expenses. Inspectors are suggesting that claims for travelling to private hospitals are not allowable as they are incurred to enable the consultant to arrive at his place of work and so are not “wholly and exclusively” for the purpose of his business.
Clearly, it is more important than ever for doctors to ensure that they are receiving the benefit of good advice from a specialist medical accountant.
Contact Ian Davies for further advice
