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Former partner

Q: I retired from partnership part-way through the last practice accounting year. I was replaced by a salaried doctor but cannot work out if my profit share is based on anything other than my departure date, with no account taken of this additional expense against profit after I had left. Is this correct?

A: As you say, time apportionment of profits has excluded the specific element of expenditure that relates wholly to the period after your departure from the partnership and for which you should take no responsibility.

However, there may be circumstances relating to income factors which should be allocated to specific parts of the year and which should be taken into account, not only in terms of partners joining or retiring, but also in terms of change of profit share ratios within the year.

Examples can include corrections of some enhanced services where payments are made monthly on account and adjusted after each NHS financial year; the costs of maternity if incurred in full or part by the partnership and non-routine costs of locums in whatever circumstances.

You could refer back to the practice accountant asking for details of how the particular figures that show as your profit have been reached and what was taken into account. Or you could employ another accountant with knowledge of general practice to make inquiries for you.

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