• TEAM
    • Laurence Slavin
    • Katie Collin
    • Anil Sookharry
    • Our full team of professionals
  • WHO WE SERVE
    • GP Practices
    • GP Partners
    • Locums
    • Salaried GPs
    • Consultants
    • Federations
    • Primary Care Networks
    • Non-Medical Individuals
    • Private Ltd Companies
  • OUR SERVICES
    • Accounting
    • Taxation
    • Superannuation And Pension
    • Cloud Accounting And Bookkeeping
    • Primary Care Network Support And Advice
    • Advisory and Consultancy
    • Partnership Mergers and Restructuring
    • Corporate Financial Governance
    • Tax Investigation Service
  • CLOUD
    • What is Cloud Accounting?
    • Xero
  • CONTACT US
  • RESOURCES
    • See more social updates…
    • Read more from our blog…
  • CLIENT PORTAL
  • Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to footer

Before Header

A Leading UK Chartered Accountant Firm Specialising in Tax and Accounting for Medical Professionals
  Call Us  Email

RAMSAY BROWN

An integrated approach to navigating the NHS’s ever-changing financial landscape.

MENUMENU
  • TEAM
        • ABOUT RAMSAY BROWN
        • With over 30 years of experience in supporting the medical community, Ramsay Brown’s partners are dedicated to enabling practitioners to serve their patients’ best interests, whilst securing their individual and practice’s financial futures.
        • PARTNERS
        • Laurence SlavinPartner
        • Katie CollinPartner
        • Anil SookharryTax Partner
        • TEAM MEMBERS No matter your needs, Ramsay Brown will ensure that you receive a personal, trusted and innovative service.
        • Our full team of professionals
  • WHO WE SERVE
    • GP PracticesProtecting patient needs, whilst securing the practice’s financial future.
    • GP PartnersServing GP partners in all areas of financial management.
    • LocumsAssisting locum practitioners in adopting and implementing the best practices
    • Salaried GPsEnabling salaried GPs to simplify accounting while meeting the financial needs specific to their professional and personal goals.
    • ConsultantsEnabling medical consultants in optimum financial management and minimising tax liabilities.
    • FederationsEmpowering Federations to support the medical sector.
    • Primary Care NetworksEmpowering Networks to support the medical sector.
    • Non-Medical IndividualsDelivering on our clients and their families’ needs.
    • Private Ltd CompaniesTailored approach and reliable industry reputation.
  • OUR SERVICES
    • AccountingBreathing financial energy into organizations, keeping them fortified against losses and enabling optimum financial management.
    • TaxationNew perspectives to tax planning.
    • Superannuation And PensionNavigate through the complex landscape of NHS superannuation pension.
    • Cloud Accounting And BookkeepingVirtual bookkeeping using digital access technology.
    • Primary Care Network Support And AdviceDedicated support and advice.
    • Advisory and ConsultancyOvercome challenges and remain competitive.
    • Partnership Mergers and RestructuringRestructuring, merger and acquisitions.
    • Corporate Financial GovernanceAssisting corporates in financial governance, risk mitigation and compliance enhancement.
    • Tax Investigation ServiceSubscribe and protect yourself.
  • CLOUD
    • What is Cloud Accounting?Virtual bookkeeping platform.
    • XeroTop choice cloud accounting software for medical professionals and hospitals.
  • CONTACT US
        • OUR ADDRESS

          The Brentano Suite
          Solar House
          915 High Road
          North Finchley
          London N12 8QJ
          United Kingdom

          View Map
        • OFFICE HOURS

          Call us on 020 8004 0555 - we're open Monday to Friday, 8:30am until 5pm.

          View full contact details
        • ONLINE

          Email us at info@ramsaybrown.com anytime - or use our contact form and we'll get back to you.

        • SOCIAL
          • Facebook
          • Instagram
          • LinkedIn
          • Twitter
  • RESOURCES
        • RECENT TWEETS
          • Fraud in General Practice, PCN action now, Incorporating PCNs and other useful tips - https://t.co/7ctXjo9qTy https://t.co/33RO0CDvtx3 days ago
          • Introducing Hubdoc - the free App to Record your Personal Expenses - https://t.co/w70XHratwa https://t.co/cLOAZqNrGk13 days ago
          • In order to provide strategic support for networks, Ramsay Brown Chartered Accountants supply updates and advice on… https://t.co/BF4wq0MZnd27 days ago
        • See more social updates...
        • LATEST BLOG POSTS
        • Fraud in General Practice, PCN Action Now, Incorporating PCNs and Other Useful Tips

          Introducing Hubdoc – the App that Records and Allocates your Tax Deductible Expenses for you

          End of Year Financial Planning for PCNs

          10-Minute Guide to The March 2021 Budget

        • Read more from our blog...
        • SECURE FILE SHARING

          Ramsay Brown uses Virtual Cabinet to securely share files and sign documents - a streamlined process that is supremely easy to use for our valued clients.

          EXISTING CLIENTS Secure Login
  • CLIENT PORTAL

Ten Key Issues for Primary Care Networks Today

You are here: Home / Primary Care / Ten Key Issues for Primary Care Networks Today

July 8, 2019 //  by admin

  1. Bank accounts

For good financial governance, we recommend you have a separate PCN bank account, which the members of the PCN have access to. However currently SBS can only have one registered bank account per entity. Therefore, you will need the funds to go into the registered bank account of the nominated payee, and then be transferred directly to the PCN account immediately on receipt.

  1. Record keeping

You should have a separate accounting programme for the PCN records, so that all members are aware of the current position and performance within the network. We recommend that this should be cloud based so that 1) all members can have access for financial transparency and 2) the data can be easily allocated to each practice when Making Tax Digital requires practices to report quarterly to HMRC.

We recommend using Xero, which provides real-time live data and connects directly to the PCN bank account, and then all members of the PCN can have access.

  1. Network funding

Please note that the network funding of £1.50 per patient is due for the full 12 months of 2019/20. Therefore, in July you should be invoicing for the backdated 3 months’ equivalent from April to June, and one month for July.

The other reimbursements (clinical director, clinical pharmacist, social prescriber etc.) are only due for 9 months from July 2019 to March 2020.

  1. VAT

Be mindful of each practice’s own taxable supplies for VAT, and how close you are to the £85,000 threshold. You will also need to consider each member practice’s current VAT position, as they may be registered already for other reasons.

This may affect who your lead practice is, as they may be providing taxable supplies to the network and could have to charge VAT.

  1. Clinical director payment

It is important to consider how clinical directors are paid and the treatment of the reimbursement within the practice.

Keep in mind that you cannot be an employee of a practice in which you are already a partner! You should consult your accountant to determine the most appropriate payment structure.

You may also need to consider amending your partnership agreement to reflect this. 

  1. Network Engagement Funding

Weighted funding of £1.76 per patient is due for signing up to participate in a network. Note that this is paid directly to each individual practice, not to the network nominated payee on behalf of the network.

While paid in connection with the network, this is a practice payment and it is therefore up to practices to decide how they wish to use it.

This payment should be due from 1st July 2019.

  1. Flexibility in governance

Allow yourself a mechanism to adopt change in your legal agreement. You may find your PCN structure changes, particularly once the DES comes down in April 2020, and you therefore may want flexibility in your agreement to change based on circumstances.

  1. Surplus/Deficit of PCN

Remember that the PCN is not a separate entity, it is a network of entities operating collaboratively.

This means that any surplus or deficit from the network actually belongs to the individual practices, and needs to be reported within their own individual finances.

  1. Provision of staff vs. services

Provision of staff is a taxable supply for VAT, but provision of services is not. To meet the criteria for providing clinical services, you need to:

  1. Hold a contract to deliver primary care (GMS/PMS/APMS)
  2. Retain control and direction of the staff member providing the service

This is only applicable to healthcare services. Provision of non-healthcare services such as back-office functions, training and management, are not exempt from VAT.

  1. Cost sharing groups (“CSG”)

If you are using a CSG to bear the costs on the behalf of the network, remember:

  1. The CSG must not make a profit and can only charge back at cost
  2. You must be a member of the CSG to benefit (i.e. shareholder, member or partner)
  3. The CSG needs to record exactly its costs related to the network to quantify the chargeback

Remember you need to be able to demonstrate all of the above to HMRC!

 How can Ramsay Brown can help?

As AISMA registered medical specialists and members of the ICAEW healthcare community, we have significant experience of the technical complexities of Primary Care. We can provide support to your PCN by:

  • Review your PCN structure and advise of potential liabilities and how to manage them
  • Set up and manage Xero software, tailored specifically to your PCN structure/members
  • Assist with PCN bookkeeping, invoicing and monthly reporting
  • Prepare annual accounts and meet with PCN members to discuss implications
  • Provide personal tax advice for clinical directors
  • Review CSG bookkeeping to ensure compliance with HMRC requirements

 

Katie Collin BA(Hons) ACA

katiecollin@ramsaybrown.com

www.ramsaybrown.com

Ramsay Brown LLP

 

Category: Primary CareTag: bank account, clinical director payment, network engagement funding, network funding, record keeping, VAT

Previous Post: « Are Your Locums Taxed Appropriately?
Next Post: New Plans to Help High Earning Doctors with their Pension Annual Allowance Charge »

Footer

MENU

  • Home
  • Our Team
  • Our Services
  • Client Portal
  • Contact Us
  • Updates
  • Privacy Policy
ADDRESS

Ramsay Brown
The Brentano Suite, Solar House
915 High Road
North Finchley
London N12 8QJ
United Kingdom

  020 8004 0555
  info@ramsaybrown.com
VISIT US

FOLLOW US
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter

Copyright © 2021 · Ramsay Brown Chartered Accountants