Pharmacy Finance

Each month the C+D Finance Zone will bring you a new chapter of Pharmacy Finance - your essential financial guide to running a pharmacy

 

Written by Anne Hutchings owner of specialist pharmacy accountants Hutchings & Co and Managing Director of Hutchings Consultants Ltd pharmacy brokers and valuers.

www.pharmacyexperts.com

www.hutchings-pharmacy-sales.com

Pharmacy Finance Chapter 9 – Family Taxation

This month, Anne Hutchings discusses the intricacies of family taxation. From asset equalisation to separation and divorce, this chapter of Pharmacy Finance is your essential guide.

Married couples and civil partners are taxed separately. What this means is that each spouse/civil partner declares whatever sources of income and capital gains they have on their own tax returns and their tax...

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Pharmacy Fincance Chapter 8 – Dealing with the Tax office

Should you worry about the possibility of a tax office (HM Revenue & Customs) investigation into your business accounts? The answer is ‘probably’, more so if your record keeping is poor and your accounts are not in line with what the tax office expects.

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Pharmacy Finance Chapter 7 – Property Issues

This chapter comes in two parts: the first covers business premises, and the second investment property situations as many pharmacists own or intend to purchase one or more investment properties.

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Pharmacy Finance Chapter 6: Maximising profit

This month Anne Hutchings looks at the four key areas to look at in your retail pharmacy business if you want to improve profits.

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Pharmacy Finance Chapter 5: Avoiding the Taxman

The Government has made it clear that it does not like people taking action to reduce their tax liabilities. In the 2004 Budget the then Chancellor announced an array of measures aimed at blocking various tax avoidance schemes. He also announced a measure to ensure that the HM Revenue & Customs was notified when a tax avoidance scheme was used, making it easier for the Revenue to track schemes and then attack them. Furthermore, Vince Cable (the new Business Secretary) wants to net £4.6bn from clamping down on tax evasion. So where does this leave you, and what can still be done to reduce your tax bill?

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Pharmacy Finance Chapter 4: trading formats

Sole trader, partnership or limited company. Which is the best way to structure your business? This chapter looks at each option and its pros and cons. You need to be able to make an informed decision about the most suitable trading format for your circumstances

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Pharmacy Finance: Chapter 3 - Taking advice 08/04/2010

There will be many occasions throughout your career when you will need to seek the advice of other professionals. Whether you are a locum or a manager, running your own pharmacy, or buying or selling a business, having a good team of advisors who are working in your interests, and can support and help you, is essential.

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Pharmacy Finance: Chapter 2 - Raising finance 02/03/2010

At an early stage in your acquisition planning you should establish how much you can afford to pay for a business. There is no point in making an offer on a pharmacy costing £900,000 only to find out that your personal resources and borrowing capacity will only stretch to £500,000.

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Pharmacy Finance: Chapter 1 - Buying a pharmacy

The purchase of a business is a major financial commitment and, for most pharmacists, a long-term one. Before embarking on such a venture you must think carefully about why you want to buy. In my dealings with pharmacists over a number of years, I have come across two types of buyer.

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Finance News

PSNC slams 'discriminatory' DH Quick Kit scheme

C+D poll reveals most pharmacists unhappy with pay

Lloydspharmacy, Asda and Sainsbury's will not reimburse employees for 2011 RPS membership

Doncaster MP ‘concerned’ over pharmacy minor ailments service cuts

Book keeping fines are not the answer, legal expert warns

Government reviews prescription charges

Alliance Boots revenues and dispensing volumes soar

Service cuts imminent, LPCs warn


Pharmacy could save NHS £95 million annually in Wales, CPW says


Numark: pharmacies are absorbing VAT increase


Drug Tariff changes for glyceryl trinitrate

PSNC rolls out LPC commissioning resource 


Numark offers members 15 per cent discount on income protection

Government to create public health service with £4bn budget

 

PharmaPlus warns of difficult times ahead

 

Four London PCTs pledge to cut £50m medicines waste bill

 

PSNC defends Cat M result

 

Pharmacy staff member robbed on way to bank takings

 

Welsh Assembly Government pledges to keep free prescriptions

 

PSNC: enshrine key services in pharmacy contract

 

LPCs vote against new pharmacy services contract

 

PSNC and fitness industry call for greater pharmacy public health role


Pharmacy bodies call on government to act on stock shortages



DH plans to cut bureaucracy in business plan


Lloydspharmacy parent Celesio's revenue soars 10%

Lansley: IT reform will save pharmacists money

 

CCA: pharmacists need incentives to help most deprived

 

Newham pharmacies concerned over £30,000 encryption software

 

Personal health budget trial offers limited access to pharmacy services

 

Alliance Boots revenue climbs 6%

 

Boots opposes Wales bag charge

 

Contractors set to receive more compensation for pricing errors

 

C+D SENATE CALLS FOR NEW FUNDING MODEL 

 




 

 

In Depth

 

LPC Conference 2010

As LPCs gathered for their annual conference in London, service troubles and finance were among the hot topics raised. Chris Chapman and Hannah Flynn report

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Category focus: oral care

Oral care is bucking the OTC trend, with pharmacy outperforming grocery in share growth. Chris Chapman reveals how to make the most of this £820m category

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Careers: Your redundancy rights

Lawyers Adam Rice and Anna West answer eight frequently asked questions. Here’s what you need to know if the worst happens.

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Analysis: Getting a fair deal from the NHS

As PSNC reveals yet more compensation for errors made by NHS Prescription Services is likely to be needed, Zoe Smeaton asks if pharmacies can ever have faith in the payment system

 

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A new funding model: C+D Senate Live Part 2

 The second live C+D Senate saw sector leaders gather at the C+D Conference to ask whether a new funding model could secure pharmacy's future. Hannah Flynn reports


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C+D Senate LIVE

The first live C+D Senate saw sector leaders gather at the C+D Conference to debate the ‘shocking’ results revealed by C+D’s 2010 PCT Investigation. Hannah Flynn reports

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Category focus: Weight management

Widen your range and link products to advice to make the most of the £70m slimming aid market, says Kathy Oxtoby

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Category focus: Winter remedies 

After a low incidence of colds and flu in 2009-10, this season should deliver stronger growth in the winter remedies sector. Sarah Thackray reports on how to boost your share of the £265m market

 

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Category M Barometer 24/09/2010

For the first time in three quarters, the category M tariff has seen a decrease in overall reimbursement from October. See how October’s tariff will affect your bottom line

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Finance Opinion

Xrayser: We deserve respect from the government

We know January brings another category M famine of indeterminate depth, and now we learn that “ludicrous” pricing errors are still being made. It feels as if the parcel I send to the NHS Pricing Division contains not prescriptions but lottery tickets, though without the jackpot.

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Clinical debate: Don’t panic over pricing... yet

Last weekend medicines pricing made the headlines, as the papers looked at the future role of Nice and value-based pricing, issuing warnings of a potential medicines postcode lottery. Chris Chapman  asks if this is the future.

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Pharmacy must get on the information superhighway


In my pre-reg year, my boss decided to upgrade his PMR system. Out went the tried and trusted labelling machine and in came a big, shiny – and probably quite expensive – Link computer. A dedicated on-site IT support person was dispatched and spent two days showing us how to print labels, order stock and enter patient records.

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Editor's comment: Geography matters

The phrase ‘postcode lottery’ was much in vogue a few years ago, with journalists keen to highlight the unfairness of geographical variability in healthcare access. C+D has this week resurrected the term – justifiably, I think, as our 2010 PCT Investigation reveals all-too-predictable but nonetheless mind-boggling variability in local spending on pharmacy services.

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Xrayser: Are we profiteering or making a living?

Ever since the Drug Tariff settled on the quixotic basic price and discount scale system of reimbursement, pharmacy has been a balance of profit and loss – we know when we dispense on some prescriptions we lose, and on some we gain. Sometimes we make a big profit, but that’s business. So when is it profiteering?

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The dispensing turf war

The simmering turf war between primary care’s two biggest alpha males is never far from erupting, so the news that doctors are increasingly looking to exploit the control of entry exemptions to open their own pharmacies will do nothing to assuage tensions.

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The Finance Zone PART 12: Company cars, vans and bicycles

Richard Baker looks at the tax rules governing company cars, vans and bicycles

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The Finance Zone Part 11: Monitoring business performance

Richard Baker explains how three simple steps can help you monitor the performance of your business and understand what it means on a day-to-day basis

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The Finance Zone PART 10: Staff benefits

Richard Baker explains how you can make benefits a considerable enhancement of an employee’s remuneration package

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The finance zone PART 9: VAT for pharmacists

VAT is an extremely complicated area. Accountant Richard Baker offers a quick guide to the five most important things pharmacists need to remember.

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The Finance Zone: Part 8 – when to expand and raising finance

The decision as to whether to expand your business is a significant one, but when is the right time? Richard Baker offers four key indicators.

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Finance Zone: Part 7 – budgeting for locums

For many, the life of the locum provides a number of advantages – the main one being flexible working arrangements. One of the main disadvantages of being a locum is the administration that goes with being self-employed.

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The Finance Zone part 6: Profit extraction 30/06/2010

When planning how to extract profits from your company as tax efficiently as possible, the best place to start is estimating what your profits are likely to be, says Richard Baker

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The Finance Zone Part 5: Retirement planning 11/06/2010

The earlier you start planning your retirement the better, says accountant Richard Baker

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The Finance Zone Part 4: Business planning.

It’s important for all, regardless of size, says accountant Richard Baker. The other benefit of keeping upto- date management accounts is that tax planning is much easier, enabling you to make timely decisions in order to minimise your tax liabilities.

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PART 3: Inheritance tax 30/03/2010

Ask most people about inheritance tax and they will tell you it’s a tax paid by the very wealthy when they die. A succinct summary, but the accuracy of it can be challenged in a number of ways, says accountant Richard Baker

 

 

 

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Finance Zone: Part 2 17/03/2010

PART 2: Tax issues for pharmacy buyers and sellers.

Accountant Richard Baker offers tips on saving tax when buying or selling

 

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