Prior to this update, we reported that hospital doctors and GPs were lobbying the government to amend the pension tax rules as the current system of restricting tax relief on pension contributions means many doctors paying almost all of the extra salary back in tax if they take on additional responsibilities or work additional shifts.
In earlier newsletters we reported that hospital doctors and GPs were lobbying the government to amend the pension tax rules as the current system of restricting tax relief on pension contributions means many doctors paying almost all of the extra salary back in tax if they take on additional responsibilities or work additional shifts.
This issue does not just affect doctors. From 2016/17 those taxpayers with ‘adjusted income’ over £150,000 and ‘threshold income’ over £110,000 receive a tapered annual allowance. This taper potentially reduces the normal annual pension allowance from £40,000 down to a minimum of £10,000 which may result in tax payable on excess contributions. As mentioned in earlier newsletters we can assist you in computing the potential liability.
The government have recently announced that it would consult on allowing senior NHS staff to select their level of pension accrual at the start of the year, to give them more pension capacity to take on additional work without breaching their annual allowance.
The Treasury has also agreed to reconsider the “taper”, which restricts pension tax relief, not just for NHS workers but across the public sector. But what about the private sector! Look out for possible changes to pension tax relief in the Autumn Budget.
If you run or are involved within a clinic or surgery then you will understand that your operation needs to be as slick as possible with information at hand and ready at your earliest convenience. It is because the clinic/surgery is so busy with a constant flow of patients from opening to close each and every day that you require software that is able to allow you to have customer notes easily to hand. This allows the clinic/surgery to ensure they have everything available at the touch of a finger and allow the smooth running of the clinic/surgery. Add to that the obvious requirement for quick and efficient accounting systems that allow invoices to be produced pretty much as soon as the patients treatment is complete and you will soon begin to understand exactly where Xero Cloud Accounting can fit in and improve your practice.
Our team have a wealth of experience working with doctors and those within the clinical sector. We work with you to provide the best possible tax efficient solutions whilst ensuring you are compliant in accordance with HMRC guidelines.
A&C Chartered Accountants are at the forefront of the best cloud accounting software to ensure the most efficient technology fits perfectly for you. We use the smartest solutions to ensure you have the right tools to maximise productivity and cashflow. Your dedicated chartered accountant offers you free cloud accounting training and ensures you are on the correct and most efficient platform for your unique business.
For more information please do hesitate to contact us on 0161 962 1855. Alternatively, you can email us using the form below and we will contact you as soon as possible. Our proactive team at A&C Chartered Accountants are here to help.