How can we raise premises funding?
Surprisingly little has been written about employers' superannuation payments under new GMS. Colleagues I have spoken to look bemused when I ask if they are out of pocket.
The truth, I believe, is that for any GP earning more under the new contract, they are paying 20 per cent back by contributing both employer and employee portions of the expense.
How could this possibly happen? The final global sum equivalent we have just been encouraged to sign up to includes the employer's superannuation contribution at 14 per cent – but this is 14 per cent of earning under old GMS. The corresponding 14 per cent deduction that is being made is 14 per cent of new GMS earning.
In other words, we are paying the 14 per cent employer's contribution as well as the 6 per cent employee contribution on all new money.
No wonder the Government can afford this new contract and all it entails. Once a further 40 per cent income tax and 17.5 per cent VAT has been chipped off, it is costing 22.5p in the pound.
Dr Colin Tanner