New to Partnership Payment Scheme

The 2020/21 GP Contract deal included the offer of golden hello payments to GPs and other healthcare professionals taking up partnership roles for the first time from 1 April 2020.

The launch of the scheme was deferred due to the Coronavirus pandemic, but full guidance has now been released.

The scheme has been rolled out in a bid to attract new partners into General Practice, having seen the number of full-time equivalent GP Partners fall considerably over the past four years.

Who is eligible for the funding?

The scheme is open to individuals who are eligible to become partners as per the NHS Act 2006, working in general practice, including, but not limited to GPs, Nurses (including ANP), Pharmacists and Physiotherapists.

Initial guidance for the scheme had excluded practice managers from the list of eligible roles but NHS England primary care medical director Dr Nikki Kanani has since confirmed that the £20,000 golden hellos for new partners in England would be extended to cover practice managers taking on partnership roles.

Participants must commit to holding a partnership role for 5 years and they must not have previously been a partner in England.  Partners must also be working a minimum of 2 sessions per week.

There is an annual eligibility check and reconciliation process which participants  agree to when they apply for the funding.

What funding is available?

A payment of £20,000 will be paid to successful applicants.  Those working less than full time can apply to the scheme, but the payment sum will be calculated on a pro-rata basis.

If the new partner  increases or decreases their  hours during the five-year term, the payment will be adjusted proportionately to the hours worked, subject to the cap.

The amount will be paid to GMS and PMS practices in one lump sum but is intended to be  passed to the new partner.  Successful APMS participants will have the payment made in line with the length of the APMS contract.

Any partners who leave the partnership before the end of the five year term will have to repay 20% of the funding for each year not completed. We would therefore recommend that the lump sum payment is not directly withdrawn from the practice, but instead is utilized as the new partner’s initial buy in fund for their share of the working capital of the practice.

There is also a training fund of up to £3,000 available to support early partnership skills development.  This funding is not linked to the number of sessions worked.

Participants would need to select what training they need, and it must be started within the first year of accepting the partnership role.  Any training must be paid for and then reimbursement claimed from NHS England.  Reimbursement will not happen until the partner has been in the post for a year.

Will I pay tax on this income?

The funding will form part of your partnership profits and so is subject to tax and national insurance, at your marginal rates, however the funding is supported by a further 20% contribution to tax and national insurance. The whole amount will not be taxed on receipt as there is potential for claw back, so an amount equivalent to 1/5 will be taxable each year

NHS England have advised that the income is not pensionable, although this is subject to parliamentary approval, and so there should be no associated NHS Pension Scheme contributions in relation to this income by the practice or the individual.

How do I apply?

The scheme is open to applicants from 1 July 2020 and an application form is available at https://www.england.nhs.uk/gp/the-best-place-to-work/ and initially applications should be emailed to england.newtopartnershipenquiries@nhs.net

If you would like any further information regarding this, please speak with a member of our healthcare services  team.

Returning NHS workers targeted by tax avoidance promoters

Many thousands of former NHS workers have returned to frontline services to assist in the fight against the Coronavirus pandemic.  HMRC very quickly issued a note advising that these returning workers were being targeted by unscrupulous promoters of tax avoidance schemes.  These schemes are typically offered through umbrella companies and boast the attractive outcome of being able to take home around 85% of your gross pay after all deductions.

The payments from such companies will frequently fall into two categories.  The first will be a relatively small salary, with the appropriate payslip and proper deductions of PAYE at source.  The second payment will be higher and described as something other than salary, often being referred to as a loan, but also perhaps as an annuity, shares or some other credit facility.  HMRC consider this second payment as disguised remuneration and will raise an enquiry to challenge such methods of payment.  They have frequently won these challenges, and so returning NHS workers need to be very careful what they sign themselves up for as they may end up liable for large amounts of underpaid tax.  If they don’t know fully what they’ve signed themselves up for, they should seek professional advice.

Below is a copy of the relevant HMRC note concerning this:

https://www.gov.uk/guidance/tax-avoidance-promoters-targeting-returning-nhs-workers-spotlight-54


David Walker

Healthcare Services Senior Tax Manager

david.walker@mooreandsmalley.co.uk

01253 404404

Help for care homes – Infection Control Fund

In May, the Government announced a £600 million Infection Control Fund available for care homes.

The information on the Government website states:

  • £600 million Infection Control Fund to reduce transmission of coronavirus in care homes
  • This forms part of wider support for care home residents and staff, including by limiting staff movement, protecting wages and giving access to NHS personal protective equipment (PPE) training
  • Each care home in England to be given a named clinical lead to provide direct care for residents
  • A wellbeing package will be also launched on CARE Workforce app to support the workforce with Hospice UK and Samaritans

Source: https://www.gov.uk/government/news/care-home-support-package-backed-by-600-million-to-help-reduce-coronavirus-infections

Please speak to your local authority to establish what your care home is due to receive. We are aware that some local authorities are asking for retrospective evidence of how it has, or will be, spent. 

Information correct as at 10 June 2020.

PPE portal for small care providers

Over the next three weeks, small care homes and small domiciliary care providers will be invited to join a new online portal to order PPE.

The PPE Portal has been developed in collaboration with eBay to help primary and social care providers to order PPE.

A small residential social care provider is defined as one with 24 beds or fewer. A small domiciliary care provider has 99 clients or fewer.

Over the next few weeks, DHSC will be continuing to send out invites to small residential and domiciliary social care services, enabling them to order PPE online through the portal.

For further information on the content of this blog, please contact Deborah Wood on 01253 404404 or email deborah.wood@mooreandsmalley.co.uk

Blackpool medical accountancy expert appointed to lead influential body

A leading local accountancy expert has been appointed chairman of an influential network of firms specialising in the medical sector.

Deborah Wood, partner at MHA Moore and Smalley, was announced as chairman of the Association of Independent Specialist Medical Accountants (AISMA) on May 18.

AISMA is a network of UK accountancy firms specialising in the medical and healthcare sector which share knowledge, liaise with a number of government departments on key medical accountancy issues and promote the benefits of quality accountancy to doctors and medical practices.

Deborah has been involved with AISMA since it was established in 1995 and previously held the role of vice chair.

She said: “It has been a pleasure to work with and on behalf of AISMA over the past 25 years and I’m looking forward to what the next 25 hold for the organisation.

“As chairman, I would like to ensure that we continue developing the excellent relationships we have built with the British Medical Association, HMRC, NHS Pensions, NHS England/NHS Improvement, PCSE and their respective bodies and representatives in Scotland, Wales and Northern Ireland.

“This will allow us to represent the views of all clients of AISMA member firms for the long term sustainability of general practice and to promote the benefits of having high quality, highly knowledgeable specialist accountants and advisors available to work with GPs and their practices.

“A key area of my role in AISMA to date has been to support the training needs of our member firms and I am keen to ensure this hugely beneficial programme continues.”

Deborah is resident partner at MHA Moore and Smalley’s Blackpool office and leads the firm’s specialist healthcare services department. She is also chairman of the Moore and Smalley partnership.

Using her expertise, she has led AISMA’s representation of the sector on a range of key issues particularly relating to the complexities of the NHS pension scheme. This has included responding to government consultations regarding the pension tax charge implications of annual allowance taper rules which were finally addressed in the last budget.

AISMA Doctor Newswire – May 2020 25th Anniversary Special

In celebration of AISMA’s 25th anniversary, there is a special edition of AISMA newline.

The newsletter features the all time top 25 tips for GPs and practice managers, including advice on

  • practice accounts
  • business planning
  • cash flow
  • pensions
  • property
  • recruitment
  • tax.

The issue also takes a look back at the history of AISMA, and a reminder of the AISMA Charter.

There is also a statement from Deborah Wood, Healthcare Services Partner, who has been appointed Chairman of AISMA.

Management Accounts Healthcare

Managing cash flow, budgets and real time information

When assessing your practice’s financial performance for a given year, the first place you might think to look is the year end financial statements or “the accounts”. However, these tend to show what the performance of the practice was looking at from a historical point of view. To make decisions that are timely and relevant based upon accounting data, the practice should be monitoring performance regularly throughout the year.

One way of doing this is to produce management accounts, which can look at performance on a quarterly or even monthly basis. Assessing this information against budget expectations and monitoring cash flow are also essential to a well-run practice.

Why prepare management accounts?

  • Management accounts can be used for internal use by the management team and the partners to help provide up-to-date relevant information about the practice’s performance more frequently than year-end accounts, and in a concise, easy to interpret format that summarises all of the data – which the management may otherwise keep across a variety of spreadsheets.
  • The requirement to produce management accounts will necessitate the management team thinking about certain financial aspects of the practice on a regular basis that may otherwise be done only infrequently and at a time when they are of less relevance. This can help avoid problems at the earliest opportunity. Some recent practice fraud cases highlighted in the press demonstrate how important it is to regularly review the finances.
  • After a few cycles of preparing management accounts, trends for seasonal variations can be identified to help the practice alleviate certain pressures which fall upon the practice and its staff.
  • Management accounts may be a requirement from the bank if there is a possibility that your practice is looking to take out any arrangements for current or new loans soon. Having a system already in place for when it becomes a necessity in that circumstance will mean the management team are already accustomed to preparing the reports in a format accepted by the bank, and being able to show management accounts from previous periods when discussing a loan with the bank may facilitate its agreement.
  • Identifying and comparing costs throughout a year can highlight and justify if there is room in the budget to increase expenditure or to flag up when expenditure needs to be curtailed.
  • Timely identification of mismatches between expenditure and reimbursements (e.g. notional rent) will show up sooner and can be raised with the appropriate bodies to rectify.

How can MHA Moore and Smalley and our preferred cloud-based software help?

  • We recommend the use of Quickbooks (QBO) for the practice’s day to day bookkeeping.
  • If this is being used, the bank transactions which will form the foundation of the management accounts are already being inputted throughout the year by the finance team.
  • QBO can be used to track the income receivable and amounts payable by the practice and can automatically be set to update the debtors and creditors on the financial statements used for the management accounts.
  • Journals can be posted onto QBO which can be easily reversed in the following quarter. Furthermore, these journals can be set up using the same recurring template each time and with a reminder option to inform the finance team when a journal posting is due.
  • We can help you use QBO Management Reports to assist you to set up your own Management Accounts.
  • As well as helping with the initial process of identifying and setting up the journals the practice needs for management accounts, we can also review any management accounts produced for reasonableness, for the management’s peace of mind as to their accuracy or before they are presented to the bank if applicable.
  • Budgets can be set and these figures inputted into QBO enabling reports to be produced to show actual results against budgeted.
  • A cash flow statement can also be produced direct from the software to facilitate the monitoring of funds.

Next steps

If you believe that your practice would benefit from producing more regular reports and would like to hear how we can help your practice produce management accounts in addition to our year end services, please contact Matt Hodgson on 01253 404404 or your usual MHA Moore and Smalley Client Relationship Manager. Alternatively, you can email an enquiry here.

Help during the Covid-19 pandemic

During the Covid-19 pandemic, we appreciate that the sector is under extreme pressure to efficiently run some essential financial functions. We are able to provide temporary support to relieve the burden where possible and deliver finance functions which may have previously been done in house. Examples of this include;

  • Preparing management accounts
  • Maintaining the practice’s financial books and records
  • Assisting with VAT returns
  • Cash flow planning
  • Payroll services

If you would like further information on this then please contact Lisa Pennington on 01253 404404 or 0115 972 1050 or email lisa.pennington@mooreandsmalley.co.uk


Blackpool accountants help doctors claim Government coronavirus support

A Blackpool based accountancy and business advisory firm has collaborated with one of the UK’s leading medical bodies to help doctors and medical practices claim financial relief for vital work to fight the COVID-19 pandemic.

Through its work with the Association of Independent Specialist Medical Accountants (AISMA), MHA Moore and Smalley has contributed to a reimbursement toolkit which can be used by practices to claim back costs for additional work during COVID-19.

AISMA has developed the toolkit with the British Medical Association (BMA), a trade union and professional body representing more than two thirds of UK doctors. The BMA is currently promoting the toolkit to its members.

The Association of Independent Specialist Medical Accountants (AISMA) is a UK network of accountancy firms specialising in the medical sector. Deborah Wood, partner at MHA Moore and Smalley, is also vice chairman of AISMA.

She said: “MHA Moore and Smalley has a dedicated healthcare team across the North West and East Midlands advising medical businesses on a wide range of key business issues.

“We have been heavily involved with AISMA since it was established in 1995 to share knowledge within the sector and promote the benefits of quality accountancy to medical professionals.

“We’re delighted to have supported AISMA on their work with the BMA to assist medical practices across the UK at a critical time and ensure they can efficiently claim back costs for their vital, life-saving work during the COVID-19 pandemic.”

The Government is expected to provide funding to medical practices to support additional patient care to fight COVID-19, such as staying open during Bank Holidays including the Easter Weekend.

More information is expected to be released by NHS England in the coming days defining the nature of available funding. The form covers both staff and non-staff costs and provides costings based on national agreed reimbursement rates.

Deborah added: “The UK medical sector is currently under extreme pressure but practitioners are facing the added strain of continuing to run their financial functions efficiently.

“MHA Moore and Smalley is able to provide temporary support to relieve the burden and deliver some of these functions which may have previously been done in house.”

Businesses who would like assistance with reimbursements can contact Lisa Pennington on 01253 404404 or 0115 972 1050 or emailinfo@mooreandsmalley.co.uk.