Out of Hours GP’s – Important Tax Changes

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HM Revenue & Customs  and Northern Ireland’s OOH’s providers have recently agreed to change the tax status of Sessional GP’s from Self Employed to Employed, starting THIS MONTH (April 2018).

Our specialist medical accounts team at Sean Cavanagh & Co. answers a number of questions about this change below:

How will it impact on Sessional GP’s?

Sessional GP’s working in the OOH providers will now be taxed via Pay As You Earn (‘PAYE’) and have subsequent income tax and NIC deducted from their pay.  This means less take home earnings now, however, it won’t affect the overall tax position of the individual in the long run.

What should Sessional GP’s do?

It is vital that you or your accountant contacts HM Revenue & Customs to ascertain what ‘PAYE’ tax code has been allocated to you and whether this is correct. GP’s income levels are wide ranging depending on personal circumstances so there is no ‘one size fits all’. This could save unnecessary tax and NIC being deducted from you.

What about Superannuation Contributions?

Superannuation deductions are scheduled to be deducted at the top tier 14.5% rate, which is currently in place for pensionable earnings of £111,377 and above. This will mean that quite a number of GP’s not in this earnings bracket will have more superannuation deducted than necessary.

Any other relevant information?

Sessional GP’s have two scheme options, the ‘As and When Engagement’ is effectively a zero hours contract with the benefit of being covered by the Crown Indemnity Insurance. The other option is the ‘Salaried GP Contract’ which is similar to before with an agreed minimum number of hours and attracts standard employment benefits such as annual leave, sick and maternity pay.

This regime has come into effect from 1 April 2018 and will not be backdated so this is good news for GP’s, however there is still uncertainty around some aspects of the superannuation element and how this will be correctly calculated and reported to the HSC Pension Service.


GP’s should act immediately so that you don’t lose out on cash flow with unnecessary Tax or Superannuation being deducted from your earnings.

Should you have any queries around this article or anything else, please contact our Tax manager, Noel Convery or Director, Sean Cavanagh.

Office: 028 8775 5880

Noel Convery: noel@seancavanaghandco.com

Sean Cavanaghsean@seancavanaghandco.com