DoH figures wrong on £100,000 GP earnings

Data showing that GP earnings rose 30 per cent to £106,404 on average in 2004/5 may be artificially high, accountants say.

Official NHS figures published last week appear to confirm predictions in GP that earnings for 2004/5 would exceed £100,000 on average.  

Average net income for GMS GPs is reported as £102,437, compared to £116,583 for PMS GPs, and £127,924 for dispensing GPs. The figures come from income tax data for almost 18,000 UK GPs. They cover private and NHS income before tax, minus expenses.  

But accountants say that the figures may be inflated by superannuation payments.  

The 14 per cent employers’ contributions practices pay for staff count as expenses, but GP partners must include both the 14 per cent employers’ and the 6 per cent employees’ contributions as income on tax returns — inflating pay figures.  

This rule was introduced for  2004/5, and accountants say some firms included the 14 per cent, while others did not. In previous years, the employers’ contribution was paid directly by primary care organisations.  

Stuart Williamson, a partner at accountants Williamson West, said: ‘The 2003/4 and 2004/5 figures are not comparing like with like. The headline figure overstates GPs’ income.’  

Laurence Slavin, a partner at Ramsay Brown and Partners, said the earnings data, collected from HM Revenue and Customs’ tax database, would not differentiate between earnings data including and not including employers’ superannuation contributions.  

Health minister Lord Warner said extra pay was ‘not just to boost GP profits’.  

DoH pay figures  

Average GP income for 2004/5  

£106,404 

Source: NHS Information Centre
 

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register

Already registered?

Sign in

Follow Us:

Just published

UK COVID-19 vaccination programme tracker

UK COVID-19 vaccination programme tracker

GPs across the UK are playing a leading role in the largest-ever NHS vaccination...

GPs to place orders for COVID-19 vaccine as NHS targets second dose at 12 weeks, says Stevens

GPs to place orders for COVID-19 vaccine as NHS targets second dose at 12 weeks, says Stevens

GP-led vaccination sites will be able to place orders for COVID-19 vaccine supplies...

RCGP and Marie Curie urge GPs to adopt end of life care standards for care homes

RCGP and Marie Curie urge GPs to adopt end of life care standards for care homes

Best practice standards to help GPs improve end of life care in care homes despite...

Thank your team for their inspirational work during the COVID-19 pandemic #myGPteam

Thank your team for their inspirational work during the COVID-19 pandemic #myGPteam

Never has teamwork in general practice been more important than during the COVID-19...

BMA mourns 'dark death toll' as UK passes 100,000 COVID-19 deaths

BMA mourns 'dark death toll' as UK passes 100,000 COVID-19 deaths

More than 100,000 people have now died from COVID-19 in the UK, five times the death...

Viewpoint: End-of-life care in care homes goes well beyond COVID-19

Viewpoint: End-of-life care in care homes goes well beyond COVID-19

Best practice standards for GPs and teams caring for older people in care homes -...