The Association of Independent Specialist Medical Accounts (AISMA) has suggested that practices will be taxed on any surplus PCN funding at the year end.

Lizzy Lloyd said: “Unspent funds will be taxed, but when rolled over and spent in the following year then tax relief will be applied and the tax position should even itself out.”

In most cases PCNs have not formed separate entities and therefore funding needs to be accounted for within the accounts of the member practices. A complicating factor is that practices within a network may have different year ends.

Mrs Lloyd said: “These timing differences, and the possibility of partners joining or leaving member practices from year to year, could make equitable calculations for tax and pensions between member practices and individual partners difficult.”

AISMA is advising practices to start drawing up their PCN annual accounts and to take advice on their tax and pension position.

Lizzy Lloyd is a board member of the Association of Independent Specialist Medical Accounts (AISMA)