Top 5 financial tips for GPs
We all know how busy a day in the life of a GP can be. Not only do you have the responsibility of looking after your patients but you also have the responsibility of looking after your business.
IMO Financial Services has put together a list of practical financial tips which we hope will assist you in protecting you and your business.
1. How to protect the financial security of your practice in case of death
Does your GP surgery consist of two or more partners? If the answer is yes, then your business operates under a legal partnership.
Do you have a formal partnership agreement in place with your partners? If the answer is no, then your partnership is governed by the Partnership Act of 1890. This act allows any partner to terminate the partnership at any time. In the event of the death of a partner, the partnership is dissolved and any sum due to the deceased partner is to be treated as the debt of the partnership. The debt can consist of any capital that the partner had invested in the business and the deceased partner’s share of undrawn profits.
If one of the partners in your surgery were to die, what would happen to it? Would you and the remaining GPs have the funds to buy out the deceased GP’s share of the business?
If you want to hear more, please click here.
2. How to safeguard your GMS pension
One of the unintended consequences of you being unable to work as a result of suffering a long-term illness or disablement is that no further contributions will be made to your GMS superannuation fund.
If you want to hear how you can protect your GMS pension contributions, please click here.
3. Scheme Deduction – what must you as an employer do?
Under legislation, you are obliged to facilitate the provision of PRSAs to such employees as outlined below and to provide payroll deduction facilities for them. You are not obliged to make any contributions to PRSAs or to advise your staff regarding PRSAs.
If you want to know more, please click here
4. Compulsory Retirement Age for Practice Staff
There has recently been some amendments to the Equality Act 2015 in relation to compulsory retirement age.
For further information, please click here
5. It’s never too early to get your accounts in order
2016 dates to remember for self- employed
File personal tax return for 2016 - 31st October 2016
Balance of tax due for 2015 - 31st October 2016
Online return ROS - 10th November 2016
- Claim what is allowable (business versus personal expenses)
- Maximise tax credits, e.g. personal tax credits, medical expenses, rent relief
- Ensure you are on the correct income tax bands/PRSI
- Avail of tax planning opportunities, e.g. pension planning, income protection
Give yourself and your accountant sufficient time before the deadline so that you can explore various tax relief opportunities suitable to your personal circumstances.
It may also be worth your while to set some time aside to meet with one of our financial advisers and discuss your existing pension assets as well as any future opportunities. Remember our reviews are free of charge!