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Partner's profit share

Q: I retired from the partnership part-way through the last practice accounting year. I was replaced by a salaried doctor but cannot see that my share of profit is based on anything other than my departure date. How can I find out what my correct allocation of profit should be?

A: Time apportionment of profits will have excluded specific elements of expenditure relating wholly to the period after your departure and for which you have no share of responsibility.

However, there may be elements of practice income 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 from the partnership, but also in terms of change of profit-sharing ratios within the year. For example, if there were corrections for some enhanced services where payments were made monthly on account and adjusted after each NHS financial year.

There may be other elements that are not suited to pure time apportionment. One option is to ask the practice accountant for specific details of how the particular profit figures for you were reached and what elements were taken into account.

Or you could employ another accountant with appropriate knowledge of general practice to make enquiries on your behalf.

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