Additional Information
Book Details
Abstract
Most general practices are businesses of quite significant size and yet many GPs are not clear on what the detail of their practice accounts really means. This book will help if you have ever found yourself confused by:
* a balance sheet
* capital accounts
* profit-sharing ratios
It will also help you to understand how practices are paid:
* the differences
between payments under the GMS, PMS, APMS and MCP contracts
* the
effects of transitioning from PMS to GMS contracts
* the mechanisms for claims and payments
* property and other reimbursements, including the Premises Costs Directions
* the new
GP Induction and Refresher Scheme
Furthermore, as an individual GP it will tell you about:
* how you pay your tax and how it might appear in
the practice accounts
* tax deductible expenses
* the differences between being employed and
self-employed for tax purposes
* joining and leaving a practice
* buying a share in the surgery premises
* forming a limited company for tax purposes
* the NHS
Pension Scheme and its various ‘sections’
* superannuation
This is a book for all those confused by accounting terminology, from GP registrars to GP principals.
Reviews of the previous edition
“Great book for GP's who want to get a better understanding of the financial aspects of general practice. It explains clearly the payment structure of general practices and also gives good information about practice accounts. Highly recommended ...”
“Great book, up to date, accurate, really clarifies the minefield of GP accounting. Explains clearly and succinctly how the practice accounts are made up and what happens when joining and retiring from practice.”
“This book is bang up to date and incredibly easy to follow. Contains useful and up to the minute information, and serves as a great source for reference.”
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Preface to the second edition | ix | ||
| Acknowledgements | x | ||
| Abbreviations | xi | ||
| Chapter 1 Introduction to practice accounts | 1 | ||
| What are practice accounts? | 1 | ||
| Why do we need accounts? | 2 | ||
| How often are accounts prepared? | 3 | ||
| Who prepares accounts and why? | 3 | ||
| Do accounts have to be prepared in a certain way? | 5 | ||
| Management of the accounts process in the practice | 5 | ||
| Chapter 2 Profit and loss account | 7 | ||
| Why is it important? | 7 | ||
| Accounting period | 8 | ||
| Comparative figures | 9 | ||
| Income | 10 | ||
| Grossing up principle | 11 | ||
| Overheads / expenses | 13 | ||
| Net profit | 13 | ||
| Publication of earnings | 15 | ||
| Chapter 3 Balance sheet | 17 | ||
| Fixed assets | 18 | ||
| Current assets | 20 | ||
| Stock | 20 | ||
| Debtors | 20 | ||
| Prepayments | 20 | ||
| Bank balance | 21 | ||
| Cash in hand | 21 | ||
| Current liabilities | 21 | ||
| Creditors and accruals | 21 | ||
| Bank overdraft | 22 | ||
| Bank loan | 22 | ||
| Total assets | 23 | ||
| Who owns the assets? | 24 | ||
| Chapter 4 Profit allocation | 27 | ||
| Prior allocation | 27 | ||
| Property-related income and expenses | 28 | ||
| Prior shared income | 29 | ||
| Prior shared expenses | 29 | ||
| Profits shared in profit sharing ratio | 31 | ||
| Chapter 5 Fixed assets | 37 | ||
| Surgery premises | 37 | ||
| Other fixed assets | 39 | ||
| Cost | 40 | ||
| Depreciation | 41 | ||
| Straight line depreciation | 41 | ||
| Reducing balance depreciation | 42 | ||
| Net book value | 42 | ||
| Chapter 6 Capital and current accounts | 45 | ||
| Capital accounts | 46 | ||
| Current accounts | 47 | ||
| Current accounts at the start of the year | 49 | ||
| Balancing current accounts | 50 | ||
| Additions to current accounts | 52 | ||
| Deductions from current accounts | 53 | ||
| Chapter 7 Specialist medical accounts | 59 | ||
| Additional / supporting information | 59 | ||
| Practice statistics | 60 | ||
| Chapter 8 How GPs get paid | 65 | ||
| Contracts for services | 65 | ||
| The GMS contract | 65 | ||
| The PMS contract | 67 | ||
| The APMS contract | 67 | ||
| The MCP contract | 68 | ||
| Mechanism for making payments to GPs | 69 | ||
| Global sum | 70 | ||
| Minimum Practice Income Guarantee correction factor | 71 | ||
| Quality and Outcomes Framework | 72 | ||
| Enhanced services | 74 | ||
| Property reimbursements | 75 | ||
| Support payments for specific purposes | 76 | ||
| Dispensing | 78 | ||
| Conclusion on GMS / PMS contract income | 79 | ||
| Other income | 80 | ||
| Chapter 9 Taxation | 81 | ||
| Calculation of taxable profits | 82 | ||
| Capital allowances | 82 | ||
| Personal expenses | 86 | ||
| How self-employed GPs pay their tax | 87 | ||
| Income tax calculation | 87 | ||
| Tax rates | 89 | ||
| National Insurance contributions calculation | 91 | ||
| How income tax and Class 4 NICs are paid to HMRC | 92 | ||
| Joining and leaving a practice | 93 | ||
| Using a limited company | 94 | ||
| Tax payments in the practice accounts | 95 | ||
| Chapter 10 NHS Pension Scheme | 99 | ||
| Employee and employer contributions | 101 | ||
| Added years contributions | 102 | ||
| Purchase of additional pension entitlement | 102 | ||
| Superannuation payments in the practice accounts | 102 | ||
| Tax relief on superannuation contributions | 103 | ||
| Other pension funding | 104 | ||
| Glossary | 107 | ||
| Index | 111 |