If you are a general practitioner, you may be wondering how Chancellor Reeves’ Spring Statement could affect your finances. Whether you run a private practice or work within the NHS, here’s what you need to know—and how to prepare.
Previous budget measures are still in force
Several measures from earlier budgets remain in place:
- Inheritance tax thresholds remain frozen until 2030, which could affect estate planning and long-term wealth preservation.
- Income tax thresholds remain frozen until 2028, meaning more NHS doctors could move into higher tax bands without corresponding salary increases.
- The National Living Wage will rise to £12.21 per hour from April 2025, benefiting employees but increasing costs for clinic owners and contractors.
- Employer National Insurance Contributions (NICs) will rise to 15% from April 2025, adding to staffing costs for employers.
- Relief for Furnished Holiday Lets will be scrapped from April 2025, potentially reducing returns for GPs with property investments.
- VAT will apply to private school fees from January 2025, increasing education costs for families using private education.
- The Business Asset Disposal Relief rate will increase to 14%, raising the tax payable when selling qualifying business assets.
Relevant updates
HMRC is receiving additional funding to step up efforts to tackle tax evasion. Now more than ever, it’s worth consulting an accountant for GP in London to review your tax planning and compliance.
The state pension and pension credit will also rise by 4.1% in April 2025. Meanwhile, the welfare budget faces a £3.4 billion cut, suggesting tighter public spending ahead.
What the Spring Budget 2025 means for GPs
If your income falls between £50,000 and £150,000, you are likely already within a higher tax band — and frozen thresholds mean more of your earnings may be taxed at higher rates over time. Private practice owners may also feel the strain of rising regulatory costs and higher employer NICs.
What steps should you take?
An accountant for GP in London can assess your tax efficiency and help you make the most of your allowances before any further rule changes. They can also guide you on estate planning and retirement strategies to strengthen your long-term financial position.
At Allenby Accountants, we offer specialist services from an experienced accountant for GP in London. Call us today on 0208 914 8887 to schedule a consultation.
