National Insurance as a GP
Am I paying too much National Insurance?
Many GPs may have at least two sources of income:
- Practice income
- Salaried income
Both these sources of income are liable to national insurance contributions (NICs). A GP will pay NICs on any salary as well as on their practice income.
There is, however, a maximum amount of National Insurance Contributions which any individual tax payer has to pay in any year.
However, in our experience, it is not uncommon for this annual maximum to be missed by an inexperienced or non specialist accountant. If the accountant does not check that the annual maximum has been exceeded the GP will pay more national insurance than is due.
The Inland Revenue has no procedure to prevent this from happening and it would not be unusual for a GP to pay £2,500 per annum in unnecessary contributions.
Even if you pay the extra there will be no additional benefits for these additional contributions.
We can make sure you do not overpay and can reclaim if you have
One of the first things we will do when appointed to act for a GP is to check what National Insurance Contributions are being paid.
If contributions have been overpaid in the past we are able to reclaim the overpayment. There is a 4 year limit in reclaiming National Insurance Contributions where clients have paid in error.