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Tax: end of year action plan

The 2016/17 tax year seems to have been more challenging than previous tax years, due to the introduction of the tapered annual allowance limit, the interaction with the 2015 Scheme, and the very late release of the type one and type two certificates. However, with all tax returns and superannuation certificates completed and submitted, it’s time to start thinking about the year ahead.

Superannuation balancing payments

For those doctors whose earnings are above the £110,000 Threshold Income limit for annual allowance tapering it will be important to make sure that any large balancing payments are collected before the end of the tax year. This will therefore mean that practice managers of practices where doctors are affected will need to check their March global sum statement to see whether they have been collected. It will therefore be necessary to check with the practice managers that they have done this. Where they have not, it is possible to make an additional Bacs payment and the details for this are: 

Bank Account Name: NHS England
Bank Name: Natwest
Sort Code: 60-70-80
Account number 10014896

Estimates of pensionable profit

The practice managers should check that the deductions on the April global sum statement are in line with the 2018/19 estimate of pensionable profits form that was submitted, especially if there are doctors at the practice who have come out of the scheme for annual allowance purposes for whom contributions have been deducted. Where this is the case, PCSE will have to be contacted using the online system. Again, it may therefore be necessary to confirm with the practice managers that they have checked the amounts are correct so action can be taken sooner rather than later.

GP Earnings Statement

If these are being prepared on behalf of clients, they will need to be done before 31 March 2018 so they can go on the practice’s website before the deadline. 


The quiet time is a good opportunity to ensure that, where there have been changes at practices which are VAT registered, a new VAT 2 has been submitted.

Dividend Planning

March is always a good time to review annual dividend levels, but with the reduction of the dividend exemption for 2018/19 to £2,000, looking at the dividend levels and therefore also share ownership for the forthcoming year will be paramount.

Computer journals and system changes

For those clients using computer packages, it is worth checking that journals have been correctly entered, so this doesn’t have to be done when the accounts are prepared and time is likely to be tight.

As most practices have a 31 March year end, this is a good opportunity for them to transfer to different computer packages (including cloud software), so it is worth making sure that everything is in place for this to happen and nominal ledger codes are set up in advance.

Accounts files for the new year

Setting up accounts files ready for the new year can save time in the busiest period. Get information requests ready for accounts information, tax return information and also personal expenses details.

Once all of these tasks have been done, there may also be a quick 5 minutes before it gets busy again to put your feet up and have a break – okay, who am I trying to kid?!

Claire Hebdige
Tax Manager, Dodd & Co Chartered Accountants