Question 1

How are GP partners taxed on their profit share?

Accepted Answer

Out-of-hours and online GPs pay income tax on taxable profit at 20%, 40% and 45%, plus Class 4 National Insurance on self-employed profit. Payments on account mean your first bill can include half of next year's tax too. Where income also comes from overseas, residence status and split year treatment decide what the UK taxes.

Question 2

What is a Type 1 pension certificate and when is it due?

Accepted Answer

GP partners report NHS pensionable profit to the scheme each year on a certificate based on the practice accounts; locum GPs use the locum A and B forms to pay contributions on each piece of pensionable work. Late or wrong forms cause missing service and incorrect pension records. We prepare the figures and check them against the accounts before submission.

Question 3

How much should GP partners set aside for tax from drawings?

Accepted Answer

GP partners should generally set aside a significant portion of their monthly drawings to cover future tax liabilities. Payments on account are due on 31 January and 31 July each year. Your specific percentage depends on your total earnings and other income sources. We calculate these liabilities in advance to help you manage cash flow.

Question 4

What is the difference between drawings and taxable profit?

Accepted Answer

Taxable profit is the total income minus allowable business expenses, regardless of what you took out. Drawings are the actual cash sums you withdraw from the business for personal use. You are taxed on the profit earned, not the amount of drawings taken. If drawings exceed profit, you are essentially withdrawing your own capital.

Question 5

How are superannuation adjustments shown in GP accounts?

Accepted Answer

GP accounts should reconcile estimated NHS pension contributions with the final certified position and show how adjustments affect each partner’s account. Partner pension contributions generally belong in the partner’s personal tax relief calculation, not as a deduction from partnership trading profit. Treatment depends on the contributor and transaction, so reconcile accounts, certificates and returns together.

Question 6

How should PCN and ARRS income be accounted for?

Accepted Answer

NHS contract income, including PCN, ARRS and UDA or orthodontic contract payments, must be accounted for in the period it is earned, with clawbacks provided for. Partners' profit shares and drawings are kept separate. Accurate accounts also drive the pension certificates each partner submits.

Question 7

What happens to tax when a GP partner joins or leaves?

Accepted Answer

When a partner joins or leaves, the partnership must calculate the profit share for the specific period they were active. This usually involves a cessation or commencement adjustment for that individual's tax return. The partnership tax return must reflect the changes in profit allocation. Stamp duty land tax may also apply if property interests are transferred.

Question 8

How is the NHS Pension annual allowance calculated for GP partners?

Accepted Answer

The annual allowance is the amount of pension growth you can have each tax year before a tax charge, £60,000 for 2026/27. For high earners it tapers: if threshold income exceeds £200,000 and adjusted income exceeds £260,000, the allowance falls by £1 for every £2 above £260,000, down to £10,000. NHS pension growth is measured as a defined benefit input, not your contributions.

Question 9

Can a GP practice incorporate?

Accepted Answer

A limited company can suit out-of-hours and online GPs with substantial private or outside-IR35 income that is not all needed to live on, because profit is taxed at corporation tax rates and can be paid out over time. It brings extra accounts, payroll and filing costs, and NHS employment income cannot move into it. We model sole trader against limited company on your real figures first.

Question 10

What should GP partnership accounts include?

Accepted Answer

GP partnership accounts should include a detailed profit and loss account and a balance sheet showing assets and liabilities. They must clearly outline each partner's capital account and their share of profits. Specific schedules for NHS income and superannuation contributions are also necessary. These accounts form the basis for the partnership tax return and individual assessments.

Question 11

What does an accountant for out-of-hours and online GPs do?

Accepted Answer

An accountant for out-of-hours and online GPs prepares your accounts and tax returns, keeps you compliant with HMRC deadlines and advises on the decisions specific to your work: how income is structured, which expenses are allowable, VAT where it applies and, for NHS scheme members, pension tax. At Medical.Accountants the work is quoted as a fixed monthly fee, agreed in writing before we start.

Question 12

Is online GP work self-employed?

Accepted Answer

Employment status depends on the real working relationship: who controls the work, whether you can send a substitute, whether you carry financial risk and how integrated you are. A contract label alone does not decide it. HMRC's Check Employment Status for Tax tool and case law set the tests, and getting it wrong can leave the engager owing PAYE.

Question 13

Can remote GPs claim home office costs?

Accepted Answer

You can claim tax relief on costs incurred wholly and exclusively for your work: HMRC-approved professional fees such as GMC, NMC, GDC or HCPC registration and approved royal college and union subscriptions, uniform laundering, and business mileage between workplaces. Ordinary commuting and most exam or training costs for new qualifications are not allowable. Employees can claim back up to four tax years.

Question 14

How much does an accountant for out-of-hours and online GPs cost?

Accepted Answer

Our packages for out-of-hours and online GPs start at £45.83 + VAT a month, with Core at £62.50 and Growth at £75 + VAT. The right package depends on your income sources, whether you trade through a company and any payroll, VAT or pension work. We confirm the exact fee in writing before any work begins, so there are no surprise invoices.

Question 15

Do out-of-hours and online GPs need to comply with Making Tax Digital?

Accepted Answer

Making Tax Digital for Income Tax applies from 6 April 2026 to sole traders and landlords whose qualifying income (gross self-employment plus property income) is over £50,000, falling to £30,000 from April 2027 and £20,000 from April 2028. PAYE salary does not count. Out-of-hours and online GPs trading through a limited company or a partnership are not brought in yet. We set up compatible software and file the quarterly updates for you.

How you work	What we check	Support to explore
Employed or umbrella (PAYE)	Tax codes, eligible employment expenses and whether a tax return is needed.	Healthcare tax refund support
Genuinely self-employed	Business income and expenses, Self Assessment and MTD eligibility.	Healthcare Self Assessment service
Your own limited company	Company accounts, Corporation Tax, director income and off-payroll status where relevant.	Healthcare limited company accounts
Partnership	Practice accounts, allocated profit and each partner’s personal tax position.	Healthcare partnership accounts

Out-of-Hours & Telehealth GP Accountants

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Partnership accounts

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PCN reporting and payroll

Accounts and tax returns

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Pension

Home-office costs

How are GP partners taxed on their profit share?

What is a Type 1 pension certificate and when is it due?

How much should GP partners set aside for tax from drawings?

What is the difference between drawings and taxable profit?

How are superannuation adjustments shown in GP accounts?

How should PCN and ARRS income be accounted for?

What happens to tax when a GP partner joins or leaves?

How is the NHS Pension annual allowance calculated for GP partners?

Can a GP practice incorporate?

What should GP partnership accounts include?

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