AISMA response to Spring Budget

‎James Gransby, a member of the AISMA Executive Board and head of healthcare at MHA MacIntyre Hudson, said: “For GPs partners already under financial pressure from high rates of tax and suffering from attacks on their pensions in recent years, the news that their main rate of class 4 national insurance contributions will rise by 2% over the next two years from 9% to 11% will be a bitter pill to swallow. Not least because this all but wipes out the promised income increases recently announced in the 2017/18 GP contract review.”

He added: “‎For locums the fall in the tax free dividend allowance from £5,000 to £2,000 per year from April 2018 will be a blow for those operating through a limited company and follows hot on the heels of a 7.5% increase to dividend rates that they are already reeling from. The tax cost of this change for a husband and wife owning shares in a limited company who are both higher rate taxpayers will be £1,950 per year, and more for additional rate taxpayers.”