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GP Locum - Superannuation

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Ive taken on a self employed doctor and just trying to get clear with how the tax calcuation should follow.  Lets assume he earned £150k and has had an additional £10k employee and an additonal £10k employer superannuation payment.  Following the Forms A&B.

Would you say his income for reporting on his tax return is £160k with £20k pension contribution of £150k with £10k pension contribution or even £150k with £20k pension contribution. 

Many Thanks in advance. 

 

 

 

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By gillybean04
20th Sep 2021 10:32

If you don't know what counts as taxable income and you don't know what counts as an allowable deduction against that income, are you sure you should be completing tax returns and (presumably) charging clients a professional fee for a service that doesn't meet professional standards?

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By javeed.goweronline.co.uk
20th Sep 2021 11:24

Thank you for going out of your way to be so unhelpful? A questions forums is to ask questions and to draw on collective understanding.
You talk about professional standards but part of this process to make appropriate enquries to satisify yourself on the conclusions drawn. I have drawn what I deem to be correct conclusion without posting it and just interested to see what others have to say.

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Replying to javeed.goweronline.co.uk:
ALISK
By atleastisoundknowledgable...
20th Sep 2021 11:45

javeed.goweronline.co.uk wrote:

I have drawn what I deem to be correct conclusion without posting it and just interested to see what others have to say.

What conclusion did you draw?

If you’d said “I think X, is this right?”, you wouldn’t have had the above response.

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Replying to atleastisoundknowledgable...:
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By Paul Crowley
20th Sep 2021 12:24

agree

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Replying to Paul Crowley:
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By Leywood
20th Sep 2021 13:29

Me too.

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Replying to javeed.goweronline.co.uk:
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By David Ex
20th Sep 2021 12:19

javeed.goweronline.co.uk wrote:

I have drawn what I deem to be correct conclusion without posting it and just interested to see what others have to say.

If you could tell us what that conclusion is and how you reached it, then it should be easy for someone to comment.

I think the tax treatment of medical practitioners has a few unusual features. Not something I know about though, just what I’ve read on here.

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Replying to David Ex:
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By javeed.goweronline.co.uk
20th Sep 2021 13:39

The only reason I didn't do that was not to lead it down a certain path.

From my perspective:-
HMRC manual states, "Where a practitioner is self-employed, they are responsible for making both the “employee contribution” and the “employer’s contribution”; for tax purposes, both elements are relievable as member contributions"
So this confirms the £20k deductions in my example. Therefore, I would add the employer's part to gross income. BIM is silent on this part but it stands to reason that it should.

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Replying to javeed.goweronline.co.uk:
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By gillybean04
20th Sep 2021 15:12

If you're able to draw the correct conclusion, then why didn't you include the correct information when attempting to draw on the experience of others?

For instance, how was the 150k earned? Solely as trading income or were they working for the NHS?

Was the 10k the defined contribution or does that include AVC?

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Replying to gillybean04:
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By javeed.goweronline.co.uk
20th Sep 2021 17:02

Not to worry, thanks for responding. I've found the missing links I needed.

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Caroline
By accountantccole
20th Sep 2021 13:22

I know enough about doctors to know that if you don't know what you are doing, pass it on to an expert.

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