On 8 February 2020, HMRC spoke publicly on a number of topics which left many PCNs needing further guidance.
In this podcast, specialist medical practices partner, James Gransby, covers the key considerations and implications for practices and new networks for the following issues:
- Taxation of the surplus funding – Without planning, up to 60 per cent of retained funds could find its way into HMRC’s purse rather than being available to your PCN for future spending.
- Employment status of the clinical director – Many PCNs may not have been paying the clinical director via payroll. Therefore, action may need to be taken before 5 April 2020, when the new tax year starts.
- VAT exposure of your PCN – When taxable supplies exceed £85,000, there will be an unwelcome 20 per cent cost to the practices unless pre-emptive action is taken.