National Insurance Contributions

Many GP principals will have at least two sources of income.  It is common for principals to have:-

  • Practice income
  • Salaried income from a hospital or a PCT

Both these sources of income are liable to national insurance contributions (NIC’s).  A GP will pay NIC’s on their practice income as well as NIC’s on their salaried income.

There is, however, a maximum amount of national insurance contributions which any individual tax payer has to pay in any year.  Often a GP will have  paid the maximum national insurance contributions due on their practice income alone.

However, it is not uncommon for this point to be missed by an inexperienced or non-specialist accountant.  If the accountant does not request that the national insurance contributions are refunded, 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 £1,500 per annum in unnecessary contributions.  The GP receives no additional benefits for these additional contributions.

How We Can Help

One of the first things that we will do when appointed to act for a GP is to check what national insurance contributions are being paid.  If the contributions have been over paid in the past, we are able to reclaim the overpayment.  For many of our GP clients we obtain significant refunds of national insurance on an annual basis.