Medics Money podcast Ep 255: Could GPs save tax with a limited company? Q&A
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Feb 18, 2025 The podcast dives into the financial intricacies of GP practices, debating the pros and cons of adopting a limited company for services. It uncovers crucial tax implications and legal hurdles that come with this option. The conversation shifts to managing adjusted net income, particularly for GP partners looking to stay under the £100,000 threshold. Key strategies for understanding pension contributions and tax relief are shared, along with insights into recent pension law changes. Practical tips and expert advice enhance financial literacy for medical professionals.
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Limited Company Complexity
- GPs considering limited companies must understand the complex tax implications.
- The headline corporation tax rate is appealing, but additional taxes apply when withdrawing profits.
Evaluate the Driver
- Evaluate the driver for using a limited company.
- Don't assume it automatically saves tax; consider the secondary tax on withdrawals.
Legal and Regulatory Hurdles
- Legal, regulatory, and contractual factors significantly complicate using limited companies for GPs.
- These include partnership agreements, CQC registration, GMS contracts, and pension implications.