April 2017 Issue 90
www.independent-practitioner-today.co.uk
INDEPENDENT PRACTITIONER TODAY
Balancing tax v. pension How your trading structure affects your pension n See p40
The business journal for doctors in private practice
In this issue
Avoid property funding pitfalls
A financing expert shows you how to navigate the borrowing maze when financing a building project P14
A litmus test for financial well-being
How internal audit can help private practice businesses assess the accuracy of internal controls P18
Need I spell it out for you?
Outsourcing secretarial services may be all the rage, but doctors must remember to remain clear in their dictation P28
Help stop tax rise By Robin Stride
Independent practitioners are being urged to sign a petition aimed at protecting private patients from further increases in the insurance premium tax they pay on health cover. Supporters of a new campaign, launched by the professional body representing companies who sell an estimated 70% of the UK’s private medical insurance, fear the tax element on policies could otherwise be the same as VAT. But they warn thousands of policyholders could not afford a 20% tax level and would cancel their cover – leading to more pressures on an already overloaded NHS. Insurance premium tax rose from 6% to 9.5% in November 2015 and went up to 10% last November. In June, it is due to increase to 12%. Following the Government’s Spring Budget U-turn on a planned National Insurance increase for the self-employed, Chancellor Philip Hammond will look to make up the shortfall and there are concerns insurance premium tax will be targeted this Autumn. Now the Association of Medical Insurers and Intermediaries (AMII) has asked Independent Practitioner Today readers for their help. Its chairman Stuart Scullion said: ‘We need the backing of the consultants who do private pracIn association with
tice to support the insurance premium tax petition. It is in the interests of everybody – especially the consumer. ‘We want them to sign up to the petition and talk about the campaign. I don’t think doctors have been near enough to the insurance premium coalface to be thinking of it. ‘But we need to try and get them to have a better understanding of how insurance premium tax increases do impact on the market.’ The campaign wants to collect at least 100,000 signatures within six months so the whole issue can be debated in parliament. Intermediaries at the AMII annual meeting reported individuals and companies cancelling private medical insurance policies due to the rising tax element. Some insured people who have just paid more for policies have seen the tax rise absorbed by their provider. But Mr Scullion claimed this was unhelpful as it made Government think the industry was fair game for further attacks. Mr Scullion told the meeting: ‘If we do not stand up and make our voice heard, there is a worry that the Government will continue to nudge insurance premium tax up, and this could have a potentially catastrophic impact on industry. ‘I’m concerned that if we don’t speak up now, insurance premium
tax could reach 20% by 2020, if not sooner.’ He said there was a complete lack of understanding and appreciation of the value the private healthcare sector adds to the UK economy, let alone how it could support an overstretched NHS. ‘We should be encouraging usage of the private sector, not penalising us at every opportunity. ‘We need to fight our corner and lobby anyone and everyone to enlist support in getting this message out.’ Alex Perry, chief executive of Bupa Insurance Ltd, told the meeting in Whittlebury, North amptonshire: ‘The independent healthcare sector needs to continue to focus on delivering the
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best possible outcomes for our customers and the best value for money. We must also speak up for a fairer tax environment. ‘Insurance premium tax on health insurance is unfair and counter-productive. The Govern ment’s loading of tax onto health insurance has already seen the number of people who pay for health insurance themselves shrink by a third since 1997.’ ➱ continued on page 2
STUART SCULLION, chairman of the AMII ‘I am concerned that if we don’t speak up now, insurance premium tax could reach 20% by 2020, if not sooner’
Xxxxx SIGN THE PETITION. HELP US COLLECT 100,000 SIGNATURES WITHIN SIX MONTHS SO THE WHOLE ISSUE CAN BE DEBATED IN PARLIAMENT. Go to website amii.org.uk/ipt-petition