Q: I am a GP with two partners. One partner retired and returned to work and is not entitled to contribute further to the NHS Pension Scheme (NHSPS). The other partner and I are both contributing members.
My accountant has deducted my superannuation contributions and also the employer contributions to the NHSPS from my profit share and has treated the employer deductions as income. In my opinion the only deductions should be my own (employee contributions). Am I correct?
A: You are incorrect. The cost of your employee and employers' superannuation should be at your expense and not shared with your partners.
Although you may share profits equally, your NHS pensionable profit will never be the same. Your pensionable profit is not only your share of partnership income, it also includes any other NHS income you earn as a GP; the expenses you claim against tax are also deducted.
As a result each partner's pensionable profit and cost of superannuation will be different which is why this should be an individual cost and not shared.