PCSE Seniority Payment Adjustments: A Heads Up for Upcoming GMS Statements

Attention GP practices: A reminder about the PCSE review of seniority payments first communicated in October 2023. Most practices should now have received communication from PCSE regarding the amount to be refunded to or collected from the practice.  This is expected to adjusted on the April, May or June GMS statement in the majority of cases.

The insight will detail partner-specific adjustments going back to 2017/18. Note that there could be a mixture of over and underpayments between partners, and some partners affected might no longer be with the practice.

Handling Adjustments and Past Partners

Payment options: Practices must notify PCSE by 23 April if they would like any underpayment to be collected in instalments.

Previously Identified Errors: Your accountant may have already identified and reserved seniority payment errors.  In this case, these amounts will need to be compared to those calculated by PCSE and any significant differences queried.  If not, then you should decide whether you wish to accept PCSE’s calculations or recalculate them.

Allocation between partners:

    • If the discrepancies were already correctly identified and reserved in the year that they related to, then they should already have been reflected in the partner’s profit share and no further adjustments are required.
    • If no previous adjustment has been made, then the adjustment should be paid to or collected from the partner that it relates to.
    • If adjustments relate to retired partners, you’ll need to notify them and they should make an adjustment on their tax return.

From the communication we have seen so far from PCSE, we do not expect these amounts to be significant for the majority of practices.

Be Prepared and Seek Guidance

Get in touch with Ballards LLP, chartered accountants, at 01905 794 504 for complex situations. Review your statement and address adjustments with their support.

Disclaimer. This article has been prepared for information purposes only. Formal professional advice is strongly recommended before making decisions on the topics discussed in this release. No responsibility for any loss to any person acting, or not acting, as a result of this release can be accepted by us, or any person affiliated with us.

For more information about our services and how we can help your business please get in touch.
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