From 6 April 2016, the current basic state pension (S2P) has been abolished and replaced by a single-tier state pension. This means that GP practices are no longer entitled to pay lower National Insurance Contribution (NIC) rates for those employees in the NHS pension scheme who had opted out of the second state pension.
The Government’s latest tax increases mean that these employees will now see a 1.4% hike to their contributions. GP Partners will see an even higher increase of 3.4% to the employer’s contribution rate, which will apply to all Practice staff and Salaried GPs, regardless of their circumstances.
Milsted Langdon knows that the demands of running a busy healthcare practice can make it difficult for GPs to give their financial affairs – both professional and personal – the time and attention they deserve. Our services are designed to add value to GP practices and help make financial management easier and more efficient. Our independent, objective advice will also help Practice Managers and GPs plan strategically for the short and long term. For more information, please contact us.