GP Net Earnings Declaration - What you need to disclose

04 September 2015

If you have found this article then you may be wondering what you need to disclose on your website by 31 March 2016 in relation to GP net earnings of your practice.

This is a summary of guidance extracted from the 2015/16 GMS contract published in March 2015.

Main points:  

  • The mean earnings for all GPs in the practice relating to the previous financial year must be published by 31 March 2016.
  •  Requirement to provide information in paper copy or on a poster to any patients without internet access.
  •  Earnings reported are pre-tax, national insurance and employee pension contributions and are net of practice expenses.
  •  Main items included are global sum, QOF, seniority, vaccinations and nationally determined enhanced services plus reimbursements for personally administered drugs and fees.  The associated expenditure relating to these is deducted from the figure reported.
  •  Examples of items to be excluded are drug reimbursements and dispensing fees along with associated costs; education and training grant income and reimbursements; locum reimbursements (maternity and sickness); non NHS income (for example medical report fees). Also excluded is any money earned from locally commissioned Enhanced Services.

 What wording will you need to include on your website?

 Example wording taken from the GMS contract guidance is below:

 "All GP practices are required to declare the mean earnings (e.g. average pay) for GPs working to deliver NHS services to patients at each practice.

The average pay for GPs working in [insert practice name] in the last financial year was £xx,xxx before tax and National Insurance.  This is for [2] full time GPs, [3] part time GPs and [1] locum GP who worked in the practice for more than six months.”

The contract provides further details of how these figures are calculated and the exact items to include – see pages 10 to 16 of the following link for a fully detailed explanation of this: GMS Contract Guidance

Needless to say for our clients we will provide the wording and calculations as part of our service to GPs when preparing the accounts and personal tax returns along with superannuation certificates for the partners.  The figures will be explained to you and we will work with your practice manager to ensure your compliance with this directive, working on your side to ensure that only that which is absolutely necessary to disclose is disclosed to conform with the direction.

If you wish to discuss this in more detail then please contact James Gransby or Robert Nelson.