A short-term win for GP parents Category: HealthcareTaxation - Posted On: Mar 27 2024 Where many GP’s income is above £60,000 and they therefore have not claimed child benefit or stopped payments, it may be time to re-start them. The chancellor announced in his budget recently that the threshold will increase to £60,000 for any claw back and the tapering will increase to £80,000. This means that as long as each parent in the household earns less than £80,000 then it is likely worth claiming. This is expected to be short lived with a change to the household income system by April 2026. When calculating a GP’s income for this purpose includes trading profit plus any employment income less any superannuation payments. For example: Dr Ann and her husband Barry have two children, Claire (10) and Dylan (2). Ann is a GP partner and her taxable profit for the March 2023 year was £90,000. Barry is employed as a practice manager and earns £40,000. Ann made superannuation payments in that year of £30,000 gross. Ann also has employment income from teaching at her local university of £5,000. Ann’s income for child benefit purposes is £90,000 plus £5,000 less £30,000 = £65,000 and Barry’s is £40,000. Under the previous system, if Ann claimed child benefit, it would all be repayable via the high-income child benefit charge as her income was over £60,000. Under the new system she would be allowed to claim £170.20 every 4 weeks which is £2,212.60 a year. Ann’s income is £5,000 over the threshold therefore she will have to pay back £553.15 via her tax return but will get to keep the rest. Claims can be made here after 6th April and are backdated 3 months: https://www.gov.uk/child-benefit/how-to-claim. For any additional information get in touch with our healthcare specialists. All News View the latest news stories from all of our sectors. View All News News by category View the latest news stories from a specific sector. COVID-19 EQ News People Experienced Professional Graduate Intern RGU Placement School & College Leaver Services Audit & Reporting Corporate Finance EQ Accounting Bookkeeping Cloud Accounting Management Accounts Payroll Taxation International Tax Making Tax Digital Personal Tax Specialisms Agriculture Charities Engineering & Manufacturing Healthcare Leisure Food & Drink Professions Property & Construction Technology
A short-term win for GP parents Category: HealthcareTaxation - Posted On: Mar 27 2024 Where many GP’s income is above £60,000 and they therefore have not claimed child benefit or stopped payments, it may be time to re-start them. The chancellor announced in his budget recently that the threshold will increase to £60,000 for any claw back and the tapering will increase to £80,000. This means that as long as each parent in the household earns less than £80,000 then it is likely worth claiming. This is expected to be short lived with a change to the household income system by April 2026. When calculating a GP’s income for this purpose includes trading profit plus any employment income less any superannuation payments. For example: Dr Ann and her husband Barry have two children, Claire (10) and Dylan (2). Ann is a GP partner and her taxable profit for the March 2023 year was £90,000. Barry is employed as a practice manager and earns £40,000. Ann made superannuation payments in that year of £30,000 gross. Ann also has employment income from teaching at her local university of £5,000. Ann’s income for child benefit purposes is £90,000 plus £5,000 less £30,000 = £65,000 and Barry’s is £40,000. Under the previous system, if Ann claimed child benefit, it would all be repayable via the high-income child benefit charge as her income was over £60,000. Under the new system she would be allowed to claim £170.20 every 4 weeks which is £2,212.60 a year. Ann’s income is £5,000 over the threshold therefore she will have to pay back £553.15 via her tax return but will get to keep the rest. Claims can be made here after 6th April and are backdated 3 months: https://www.gov.uk/child-benefit/how-to-claim. For any additional information get in touch with our healthcare specialists. All News View the latest news stories from all of our sectors. View All News News by category View the latest news stories from a specific sector. COVID-19 EQ News People Experienced Professional Graduate Intern RGU Placement School & College Leaver Services Audit & Reporting Corporate Finance EQ Accounting Bookkeeping Cloud Accounting Management Accounts Payroll Taxation International Tax Making Tax Digital Personal Tax Specialisms Agriculture Charities Engineering & Manufacturing Healthcare Leisure Food & Drink Professions Property & Construction Technology