Questionnaire history
703 responses from medical doctors registered with the General Medical Council
1. Case History: a school fees discount - income or a gift?
A female part-time partner is appointed to a practice. Shortly afterwards the head of a local fee-paying school approaches the practice and an arrangement is reached whereby the new partner becomes the school medical officer. She undertakes two surgeries a week in return for a fee paid into the practice, which is two thirds of the recommended School Medical Officers association fee. All goes well for nine years. The eldest daughter of the female partner then expresses a desire to attend the school, sits the entrance examination and passes. She is offered a place. The head writes to the female partner at home saying that in recognition of all the help she has given to the school, often in her own time in evenings and at weekends, the head and governors would like to offer a discount on the fees. Since her daughter did well in the examination the discount amounts to 8% of the total one third discount on the normal fees. The original contract is not changed in any way by the award and continues in place. The other partners, however, hearing of the discount, say that it is income or a benefit in kind, and belongs to the practice as a whole. The female partner points out that in her letter the head specifically said the award was a personal gift, intended for the education of her children. The practice digs in its heels, insists that the award is income, and demands repayment. The practice agreement has a clause permitting retention of gifts by individual partners. This is to no avail. Repayment is demanded, mediation by the BMA is refused, and when the female partner points out that she could invoke the practice agreement arbitration clause, she is told that if she does this the practice will be dissolved.
| Outcome | N | %
|
|---|
| Gift | 546 |
|
| Income | 128 |
|
| NUnsure | 29 |
|
Total responses 703
Mazars Opinion:
Opinions were divided as to the answer to question 1, whether a school fees discount is income or a gift. Without seeing the partnership deed, it is difficult to comment fully. In such instances, we would recommend that the best course of action would be to approach a specialist partnership lawyer to get his view on the interpretation of the relevant clauses concerned. However, subject to the above, in our view if the gift is a personal one and both non-contractual and unsolicited, then it would belong properly to the individual under the relevant clause. This is not to say, however, that the Inland Revenue would not contend that it was taxable. While in principle voluntary payments and gifts are not subject to tax, to the extent that they can be attached to past services rendered, the likelihood is that they will be.
Outcome:
This was a serious practice dispute over a relatively small sum of money which caused disproportionate unhappiness. The practice maintained its assertion that the school fees discount awarded to X was not a gift. The discount was held to be income and therefore the property of all the partners. The award was seen as a separate arrangement, the acceptance of which by X was a breach of the practice agreement. The Headıs letters explaining that she had intended the discount as a personal gift to X and not a general award to the practice were ignored. BMA mediation was rejected. LMC involvement was politely declined. The practice made no effort to seek any other outside legal advice or expert facilitation. Since the practice held the discount to be income, the OGiftsı clause in the agreement was did not apply, and X was told that if she invoked the arbitration clause the practice would dissolve. Deprived of meaningful access to elementary industrial dispute protection, X concluded that she had no option but to bow to the power of the majority or leave the practice and her patients. She chose to pay the price of peace - the 8% difference between the fee which X was charged and the schoolıs normal fee - to her partners. Each will receive some £800 tax-free from X. The agreement under which X has acted as the much-admired school medical officer for 16 years is also to be terminated by the practice. X, however, adamantly refused to accept that had broken the practice agreement, and her partners chose not pursue that point. The Head was appalled and incredulous at the consequences of her intended generosity to X, whose children, happily, continue at the school.
Who is right? Is it income or is it a gift?
2. What proportion of your or your practice's income is derived from:
2a. The NHS?
| Response (q1561) | N | %
|
|---|
| None | 88 | 12.5
|
| 1-20% | 14 | 2.0
|
| 20-40% | 8 | 1.1
|
| 40-60% | 21 | 3.0
|
| 60-80% | 78 | 11.1
|
| 80-99% | 317 | 45.1
|
| All | 177 | 25.2
|
Total responses 703
2b. Private Practice?
| Response (q1562) | N | %
|
|---|
| None | 295 | 42.0
|
| 1-20% | 303 | 43.1
|
| 20-40% | 52 | 7.4
|
| 40-60% | 20 | 2.8
|
| 60-80% | 4 | 0.6
|
| 80-99% | 5 | 0.7
|
| All | 24 | 3.4
|
Total responses 703
3. Is your practice?
| Response (q1564) | N | %
|
|---|
| I am not in general practice | 325 | 46.2
|
| GMS | 291 | 28.5
|
| PMS | 37 | 5.3
|
| Other | 50 | 7.1
|
Total responses 703
4. Why do you use your current financial advisers? (select all that apply)
| Response (q1565) | N | %
|
|---|
| I don't use financial advisors | 234 | 33.6
|
| They understand my business | 223 | 32.0
|
| I have used them for some time | 270 | 38.7
|
| They respond quickly | 150 | 21.5
|
| They give sound advice | 258 | 37.0
|
| I get on well with them | 241 | 37.0
|
| They have offices nearby | 73 | 37.0
|
| Other | 51 | 7.3
|
Total responses 1500
5. What might encourage you to consider changing financial advisers? (select all that apply)
| Response (q1567) | N | %
|
|---|
| Nothing | 219 | 31.7
|
| Changes in personnel | 94 | 13.6
|
| NLower fees | 183 | 26.5
|
| Range of services | 121 | 17.5
|
| Medical profession specialist skills and experience | 322 | 46.7
|
| Other | 37 | 4.4
|
Total responses 976
6. What source(s) of information do you or might you use to select or shortlist accountancy firms?
| Response (q1569) | N | %
|
|---|
| None | 69 | 9.9
|
| SRecommendation | 602 | 86.1
|
| Internet | 77 | 11.0
|
| SProfessional Directories | 129 | 18.5
|
| Telephone directory / Yellow Pages | 25 | 3.6
|
| Other | 22 | 1.2
|
Total responses 924
7. How important are the following in your decision to appoint a professional adviser:
7a. Fees?
| Response (q1572) | N | %
|
|---|
| Very important | 174 | 24.8
|
| Important | 399 | 56.8
|
| Not so important | 106 | 15.1
|
| Unimportant | 11 | 1.6
|
| Unsure | 13 | 1.5
|
Total responses 703
7b. Experience/expertise?
| Response (q1573) | N | %
|
|---|
| Very important | 493 | 70.1
|
| Important | 196 | 27.9
|
| Not so important | 4 | 0.6
|
| Unimportant | 4 | 0.6
|
| Unsure | 6 | 0.9
|
Total responses 703
7c. Experience/expertise?
| Response (q1574) | N | %
|
|---|
| Very important | 49 | 7.0
|
| Important | 229 | 32.6
|
| Not so important | 328 | 46.7
|
| Unimportant | 88 | 12.5
|
| Unsure | 9 | 1.3
|
Total responses 703
7d. Experience/expertise?
| Response (q1575) | N | %
|
|---|
| Very important | 446 | 63.4
|
| Important | 226 | 32.1
|
| Not so important | 16 | 2.3
|
| Unimportant | 9 | 1.3
|
| Unsure | 6 | 0.9
|
Total responses 703
7e. Experience/expertise?
| Response (q1576) | N | %
|
|---|
| Very important | 114 | 16.2
|
| Important | 432 | 61.5
|
| Not so important | 213 | 18.8
|
| Unimportant | 4 | 2.7
|
| Unsure | 6 | 0.9
|
Total responses 703
7f. Experience/expertise?
| Response (q1577) | N | %
|
|---|
| Very important | 17 | 2.4
|
| Important | 121 | 17.2
|
| Not so important | 365 | 51.9
|
| Unimportant | 188 | 26.7
|
| Unsure | 12 | 1.7
|
Total responses 703
7g. Experience/expertise?
| Response (q1578) | N | %
|
|---|
| Very important | 47 | 6.7
|
| Important | 270 | 38.4
|
| Not so important | 270 | 38.4
|
| Unimportant | 74 | 10.5
|
| Unsure | 42 | 0.90.6
|
Total responses 703
7h. Experience/expertise?
| Response (q1579) | N | %
|
|---|
| Very important | 18 | 2.6
|
| Important | 140 | 19.9
|
| Not so important | 339 | 48.2
|
| Unimportant | 179 | 25.5
|
| Unsure | 27 | 3.8
|
Total responses 703
7i. Experience/expertise?
| Response (q1580) | N | %
|
|---|
| Very important | 160 | 22.8
|
| Important | 392 | 55.8
|
| Not so important | 112 | 15.9
|
| Unimportant | 29 | 4.1
|
| Unsure | 10 | 1.4
|
Total responses 703
8. Is your accountant proactive in offering guidance on issues that are relevant to you, e.g. tax incentives on the development of drugs and vaccines, limited liability partnerships etc?
Response (q1582)| N | %
|
| Yes | 174 | 24.8
|
| No | 231 | 32.9
|
| Not sure | 87 | 12.4
|
| Don't have an accountant | 211 | 30.0
|
Total responses 703
9. Have you used or would you consider using an accountant for any or all of the following:
9a. Advice on taxation, e.g. preparation of individual expense claims, tax minimisation, completion of annual income tax returns (including partnership return), partnership taxation liabilities?
| Response (q1584) | N | %
|
|---|
| Have used | 456 | 65.3
|
| Would consider using | 186 | 26.6
|
| Would not consider using | 35 | 5.0
|
| Unsure | 21 | 3.0
|
Total responses 1005
9b. Partnership issues, e.g. settlements for leaving or retiring partners, agreements with incoming partners, LLPs?
| Response (q1585) | N | %
|
|---|
| Have used | 258 | 37.4
|
| Would consider using | 181 | 26.3
|
| Would not consider using | 119 | 17.3
|
| Unsure | 131 | 19.0
|
Total responses 1005
9c. Premises issues, e.g. cost rent scheme, raising finance, borrowing, improvement grants, lease or buy decisions?
| Response (q1586) | N | %
|
|---|
| Have used | 218 | 31.6
|
| Would consider using | 244 | 35.4
|
| Would not consider using | 116 | 16.8
|
| Unsure | 111 | 16.1
|
Total responses 689
9d. Pension & retirement issues, e.g. NHS, added years, spouses salary/pension, staff scheme, early retirement?
| Response (q1587) | N | %
|
|---|
| Have used | 245 | 35.5
|
| Would consider using | 358 | 51.9
|
| Would not consider using | 63 | 9.1
|
| Unsure | 24 | 3.5
|
Total responses 690
9e. Practice administration, e.g. practice agreements, bookkeeping, drawings, accounting software?
| Response (q1588) | N | %
|
|---|
| Have used | 223 | 32.3
|
| Would consider using | 233 | 33.8
|
| Would not consider using | 133 | 19.3
|
| Unsure | 101 | 14.6
|
Total responses 690
10. Had you heard of Mazars Neville Russell before this questionnaire?
| Response (q1593) | N | %
|
|---|
| Yes | 18 | 2.6
|
| No | 678 | 96.4
|
| Unsure | 7 | 1.0
|
Total responses 703
11. Would you value a regular question and answer feature on the Medix site about financial matters which would be supported by Mazars Neville Russell?
| Response (q1549) | N | %
|
|---|
| Yes | 71 | 10.1
|
| Yes, if impartial | 439 | 62.4
|
| Yes, if not supported commercially | 37 | 5.3
|
| No | 93 | 13.2
|
| Unsure or need more information | 63 | 9.0
|
Total responses 703
