GP practices set for pension contributions hike
This is expected to mean the average practice paying £50,000 a year more towards pensions, or £7,000 per GP. Speaking to Pulse Magazine, Director of the Association of Independent Specialist Medical Accountants Andrew Pow said the proposal is likely to prove very unpopular, as it will hit both practices and individual GPs.
He remarked, "This will have a severe impact on practice finances unless additional funding is available. To make it even worse, individual higher-earning GPs in the 2015 pension scheme could also see an increase in their annual allowance tax charge." He said the extra costs would cause "huge" problems unless there is some subsidy from central government.