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April 2020 Issue 120
INDEPENDENT PRACTITIONER TODAY
COVID-19 Managing your business through the crisis
Read the regular expert advice on our website on how to keep you and your business afloat
The business journal for doctors in private practice
In this issue
Fix for faults shown by Paterson probe Could The Private Practice Register be a solution to the information deficit shown by the Paterson Inquiry? P14
How to navigate the GDPR labyrinth
Advice on data protection and the confusion surrounding consent P20
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Avoiding the fall-out Why having a practice agreement is essential if you don’t want to lose everything P36
Remedies for testing times By Robin Stride
Independent practitioners are being given wide-ranging advice to help secure their business futures from the ravages of Covid-19. Hundreds of doctors with private practices committed themselves totally to patients in the NHS and others made way as their independent hospitals helped the state at cost price. Specialists laid off secretaries, while others were hit by staff absences caused by transport problems and partners self-isolating or staying home to child-mind. Many sought financial help and here are some key issues and experts’ tips: Doctors were advised to seek a defence cover reduction for the lower level of work anticipated for the upcoming year or they might otherwise pay too much (see story on page 4). James Gransby, of RSM UK Tax and Accounting Ltd, added that those operating through a limited company and with built-up cash through retaining profits could find that now was the time to In association with
£12.50
‘If you have a company filing deplete reserves to pay personal deadline approac hing soon, living costs. Companies House has given flexi‘The main ways will be via divibility over submission deadlines, dend, taking a loan from the comso keep checking its website for the pany or depleting money you have latest news on this. Presently, they previously loaned the company. are offering a two-month extenTaking a salary is also possible, but sion to the normal filing date. would incur more tax. ‘You need to ask for the ‘When extracting profits extension before your as dividends, then divinormal filing date, it is dend tax of up to 38.1% not giving this automatiwill be payable personally, cally.’ so don’t overlook this and Paul Gordon, medical keep some money aside for specialist financial planwhen this becomes payaner at MacArthur ble. Gordon, said consultants ‘You can borrow money James Gransby and GPs were worried from your company by way about meeting existing expendiof a loan without having to declare ture, but cutbacks were possible. dividends. This must be repaid They were taking a mortgage within nine months of the compayment holiday of up to three pany year-end to avoid a tax charge. months, the limit as we went to ‘So operating with a 31 March press, without impacting their year-end then taking it on or after credit score. This applied to both 1 April 2020 will mean it does not residential, buy-to-let and loans. need to be paid back until 31 Mortgage payments after expiry December 2021.’ of the three months would be Mr Gransby, a spokesman for the adjusted upwards to take the Association of Independent unpaid amount into account. Speciali st Medical Accountants, The process was ‘relatively said enough should be retained to straightforward’ with lenders pay any corporation tax due.
accepting instruction by phone, with some allowing email to avoid being on hold. The Government is protecting 80% of an employee’s salary up to £2,500 monthly to avoid them being made redundant. Payments are expected this month, backdated to March if staff are re-employed and granted a leave of absence. Mr Gordon added: ‘The July income tax payment can now be deferred until January 2021, which is certainly welcome and, better still, no action is required, although I suggest contacting accountants to confirm the position and prepare for the increased January payment. ‘But note that those impacted by the pension annual allowance and looking to use Scheme Pays for 2018-19, the deadline remains 31 July 2020. ‘Mortgages can be switched to an offset facility, using funds reserved for tax liabilities/savings to reduce the interest payment. These funds can be accessed when required to supplement income and cover expenditure.’ ➱ continued on page 3