Healthcare Specialism

There are more than 11,000 pharmacies operating within England, with 40% independently owned. Many of these pharmacies have been victim to the general drive to reduce overall costs to the NHS and, as a result, profitability has suffered over the past few years.

We understand the needs of your sector and can offer detailed accounting services. These include; reviewing margins, reviewing wage costings, benchmarking these to ensure profitability is in keeping with other pharmacies.

We are experienced in situations where independent pharmacies are held as part of the owner’s retirement strategy. We at Sowerby can assist and offer advice to ensure maximisation of this asset when it comes time to sell.

Whilst we understand that drug dispensing doctors are different, the basic income, costs and challenges are similar.

Our ageing population has meant that the demand for care homes has increased significantly. This has come with significant profitability pressures as a result of austerity and the National Minimum Wage (NMW).

There has recently been a shift in emphasis, with more resources being directed to care in the community. There is also an ever-increasing demand in the sector regarding mental health issues.

There is a real need for an adviser who understands these challenges. We can help analyse your occupancy rates, key food and wage margins, and benchmark these with others in the sector.

The largest asset in the business is the care home itself. Due to its specialist nature, you can claim significant capital allowances for the integral features – we can handle these claims in a timely and efficient manner.

The recent changes to the PAYE system, as well as the introduction of the auto-enrolment workplace pension legislation, has made business payroll an onerous task to manage. Sowerby offers a payroll outsourcing service, allowing you to concentrate on the day to day running of the business.

Our services are individually tailored on a client by client basis but generally include the following:

Management of practice cashflows is one of our top priorities, as well as ensuring that the practice and all individual doctors have sufficient cash to meet obligations and tax demands.

Our services to this end are:

• Preparation and presentation of quarterly or monthly management accounts.
• Planning a drawing and tax saving/payment schedule.
• Preparation of projections and cashflow forecasts.
• Provision of book-keeping and payroll services.
• Strategic Assistance.

The need to look at the long-term goals and aspirations creates further need for specialist advice. We at Sowerby can assist the practice, partners and management with advice on:

• Securing finance.
• Cost and notional rent and service charges.
• Estates and Technology Transformation Funds (ETTF) or improvement grants.
• GP practice mergers and takeovers.
• Retirement and succession planning.
• Partnership agreements.
• Incorporation of the business – Consideration of the merits of incorporation.

An increasing number of locums are offering their services through a limited company; however, the tax implications can be far reaching and onerous. There is a particular need to review potential VAT implications, a tax that most medical professionals and their advisers ignore to their peril.

• Preparation of your Self-Assessment tax return.
• Review of your tax position with advice on tax planning to mitigate your tax liabilities.
• Preparation and processing of your personal expense claims.
• Advice and assistance with Locum incomes.
• Advice in respect of the tax implications of the NHS pension scheme.

Whilst we are not independent financial advisers, we do work closely with several specialists in the sector, and together we are able to assist in the following areas:

• Review and advice on annual allowance and lifetime allowance pension rules.
• Assistance and advice on retirement planning.