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GP Superannuation accrual / debtor

GP Superannuation accrual / debtor

When preparing GP accounts to 31/3/05 it is apparent that several of the partners are underpaid on 6% and 14% superannuation and others are overpaid.It is understood that the amount PAID should be entered on the individuals SAR.
It is also understood that the accounts to 31/3/05 should contain an accrual for the amounts underpaid. But should they also have a debtor for those GPs who are overpaid? It would be a lot simpler if the amount paid was debited to drawings with no accrual so that the amount in the accounts tied up with the self assessment returns. Of course some GP's will get tax relief on the amount paid even though they will receive a refund when the certificates are filed.
There are so many practical difficulties with this ill thought out system and there are any number of ways to deal with the above. Does anyone know the "right" way??


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By kuriyan
20th Feb 2006 16:34

The document is at:


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20th Feb 2006 12:13

Yes claim both on SAR.
HMC&R have created a concession to allow the surplus over 15%. There is a wording to be entered on the SAR white space. Haven't got it to hand but think you'll find it on NHSPA website. I'll post it if I find it

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By kuriyan
20th Feb 2006 09:38

'Employers' contribution to pension - deductible?
Since GP partners now fund the 14% 'employers' contribution, how do they claim relief?

Box 14.10 in the tax return? Or is this for 'employee' contribution only?

I thought relief is restricted to 15% of pensionable pay- am I right? If so, how do they get relief for the (6%+14%) deductions?

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06th Jan 2006 21:57


HMRC's view is that contributions are allowable on a paid rather than accrued basis, with relief given in personal returns as opposed to a deduction in the practice accounts (although this issue doesn't appear to have been finalised).

On this basis the accounts treatment shouldn't matter - if you accrue for underpayments to get the capital accounts "right" then it seems logical to bring in debtors for overpayments. However, if contributions are debited when paid it is only a timing issue until they wash through the capital accounts.

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By b1lly
06th Jan 2006 13:07

Employer's pension contribution
Hate to be the bearer of bad tidings but there is a suggestion that superannuation contributions should not be in your practice accounts. It is after all a contribution by the 'employer' to an employer's pension scheme and it is not therefore incurred wholly & exclusively in earning the profits of the trade.

See the latest information from the LMC.

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06th Jan 2006 13:43

GP Superannuation accrual / debtor
Thanks for commenting.
Could you give me a source for your view?

Acccording to announcements just before Xmas superannuation should be charged to drawings. It's just the paid/ accrued / debtor situation I'm confused about.


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