Tax planning for GPs and healthcare partnerships

GP and healthcare partnerships have a specific accounting structure — profit shares between partners, partnership-level expenses, and pension considerations that don't apply to a typical small business.

How partnership profit is taxed

Partnership profit is allocated to individual partners according to the partnership agreement, and each partner is then personally taxed on their share through Self-Assessment, rather than the partnership itself paying tax.

NHS Pension Scheme considerations

Partners' NHS pension contributions are calculated on partnership profit, and annual allowance issues can arise where profit is high or fluctuates significantly year to year — this needs coordinating with your accounts, not treated separately.

Partnership-level expenses and drawings

Distinguishing partnership expenses from individual partner drawings, and managing capital accounts correctly, keeps year-end accounts accurate and avoids disputes between partners.

Our advice

We prepare partnership accounts and coordinate with pension considerations specific to GP practices, so each partner's personal tax position is accurate and pension implications are flagged in advance.