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Rowleys Red Flag Alert – April 2021

20th April 2021

Welcome to Rowleys Red Flag Alert, a brief overview of topical issues for GP Practices.

Top tips – How are you treating your Practice salaried GPs?

Salaried GPs should have submitted their Type 2 Annual Certificate of Pensionable Profits for 2019/20 before the end of February 2021.

This is the mechanism for NHS pensions to ensure the correct pension contribution tier has been applied across all the practitioner’s roles.

Completing the form is a requirement of the NHS Pension scheme and is the responsibility of the individual GP. As they are self-assessment forms, they should be submitted by the salaried GP or their accountant and are not the responsibility of the Practice Manager.

Under/overpayments of contributions

The Type 2 certificate, reconciles the amount of pension due for employees, added years and employers contributions, with the payments on account that have been deducted from the Practice GMS monthly statements.

If the salaried GP is in arrears of contributions in respect of a salaried GP post, these are collected via the Practice GMS statement, even if that GP has left.

Likewise refunds are also paid to the Practice.

Administration points to consider

• Ensure the correct tier rate and pension deduction applied on the salaried GPs payslip.
• Review GMS statements each month to ensure deductions are being made for salaried GPs.
• Ensure employee superann deductions on the GMS statement match those deducted from the GPs payslip each month.

How do you account for the under/overpayments?

• Employees and Added Years elements need paying/refunding by/to the salaried GP.
• Employers element can remain in the Practice.
• Problems will arise if the employee amount deducted in their payslip does not match the GMS statement. A calculation will then need to be made to establish the element due/paid by the Practice and the salaried GP.

Estimates of Pensionable Profits

Practices are also reminded that they are required to submit estimates of salaried GP pay to PCSE by 1^st March each year. This will enable PCSE to make the correct pension deductions from the GMS statements.

For further information on the above or to arrange a consultation, please contact Tanya Day tanya.day@rowleys.biz  or Paula Swann Jones paula@rowleys.biz or call 0116 282 7000. These overviews are guides only and cannot deal with any issue in great depth, so for personal individual advice or further information please contact our team. www.rowleysmedical.biz