Responding to the 2025 Spring Statement, Andy Pow, adviser to the board of the Association of Independent Specialist Medical Accountants, said:
‘Today’s Spring Statement offered no comfort for practices fearful of the impact of increased National Insurance costs.
‘Subsequent documents released by HM Treasury reveal increases in late payment penalties for VAT and self assessment income tax, which will apply to GP practices and doctors joining Making Tax Digital (MTD). MTD requires some businesses and individuals to keep digital records and submit updates online every quarter using compatible software. The new penalties will be 3% of the tax outstanding where tax is overdue by 15 days, plus 3% where tax is overdue for 30 days, and with another 10% where tax is overdue by 31 days or more.
‘In addition, MTD will eventually capture more doctors who trade as self employed or who earn rental income (not including GP partnerships). This is because the income threshold will be reducing from £30,000 to £20,000 in April 2028. This will result in more onerous compliance requirements and the need for doctors to seek advice from a specialist medical accountant.’