As readers should be aware, the taxation of medical doctors participating in the General Medical Service (GMS) Scheme was high on the Institute’s agenda throughout 2023. In September of last year, we wrote to the Minister for Finance expressing our concerns about the proposal to assess GMS income on the treating doctor rather than as income of the practice, as we were unable to resolve the matter any further through the TALC process (as the matter required legislative amendment).
Following our representations, the Minister introduced a Committee Stage amendment to the Finance (No.2) Act 2023 resulting in the introduction of section 1008A TCA 1997. The amendment provides that income received under a GMS contract by doctors in partnership can be treated as income of that partnership once the appropriate elections are made. Readers should note that employed doctors who are not partners in a partnership will taxed under self-assessment rules on GMS income from 1 January 2024.
Revenue has now updated its guidance - General Medical Service (GMS) Scheme payments to medical practitioners – TDM 04-01-15 – setting out how medical partnerships can apply the new provision and the time-limits for making the necessary elections.