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  


Source: NHS Information Centre

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins


Already registered?

Sign in

Follow Us:

Just published

Rebuild GP campaign logo

Hundreds of GPs sign open letter highlighting 'decades of neglect' of general practice

Hundreds of GPs have signed an open letter to patients warning that 'decades of neglect'...

Dr Farah Jameel

PCNs are 'existential threat' to GP independent contractor model, BMA warns

The BMA's England GP committee has warned that PCNs pose an 'existential threat'...

Houses of Parliament

GP partnerships 'like collapsing Jenga stack' after Javid threat to nationalise practices

Sajid Javid's decision to back a report calling for the end of the GMS contract within...

£20 notes spread out

VAT trap for PCNs could strip millions of pounds from general practice

Tens of millions of pounds could be stripped from general practice because work carried...

Talking General Practice logo

Podcast: Is the BMA representing GPs effectively, why GPs face a pension tax hit, and views on the workload crisis

In our regular news review the team discusses representation of GPs, a new survey...

Man sleeping

NICE guidance on insomnia backs app to replace sleeping pills

Hundreds of thousands of people with insomnia could be offered treatment via a mobile...