Should we set up a company to run a new community service or pay the income into the partnership?
Our practice is considering setting up a community urology service. The local practice based commissioning cluster has indicated that our bid would be carefully considered. We have heard of some practices that have set up a separate company to provide such services and that this may be financially beneficial. We would probably work with a local consultant who would share in the profits. Under present tax legislation would it be more tax effective to go the company route? Or should we have income paid into the partnership, paying the consultant a fixed share?
A GP in Beckenham, Kent