GPs warned by Inland Revenue
GPs in a partnership who set up
individual limited companies are breaking the law unless they split the £10,000 tax allowance between them, the Inland Revenue has confirmed.
A spokesman said last week that GPs risk investigations into their past tax submissions and may be fined if they each claim the allowance.
The warning comes after accountants said increasing numbers of GPs were setting up companies to save tax on their non-NHS income.
'There are provisions to stop people fragmenting a business across a number of companies so the profits of each are below the corporation tax threshold,' he said.