New to Partnership? How your £20,000 Start-Up Lump Sum works

02 August 2021

NHS England announced the New to Partnership Payment Scheme (N2PP) from 1 April 2020 which gives those eligible a lump sum to support them to start up as a new partner. Applications must be made within six months of becoming a partner and you could receive £20,000 if you work full time (this sum is pro-rated for part time GPs working a minimum of two sessions per week) plus a contribution towards on-costs of up to £4,000. 

The N2PP payment is taxable but is not pensionable

The scheme is designed to increase the number of partners working in primary care and stabilise the GP partnership model and will run until at least March 2022. GP Practices often have a year end of 31 March with some new partners joining on 1 April so care is needed over the start dates for new GP partners when approaching 31 March 2022.   

The other main eligibility criteria for the new partner includes being a Health Care Professional working in general practice, to not have been a GP partner previously in England, to have an equity share of profits of the partnership, to commit to remaining a partner in a GP practice for five years. It is expected that the scheme will evolve and so keeping up to date with guidance is important.

This money can be used by partners to fund their share of working capital going into the practice. Often when a new partner joins a partnership, although there may be in increase in pay, actual take home pay can be lower for some time because the new partner needs to contribute to the practices’ working capital.

The contribution is normally financed by reduced monthly drawings for a period or repayment of borrowings on a loan taken out to fund a share of working capital.

There will be a partial claw back of the N2PP scheme payment where the new partner either reduces their sessions or ceases to be a partner within the five year period.

In addition to the N2PP, new partners are able to access a training fund of up to £3,000 (not pro-rated for part time GPs) to help build the business skills required to develop into their partnership role. This covers non-clinical training only and the GP must have approval from the CCG. 

BDO has developed a program to deliver one to one training on practice financial issues for new partners. As a new partner, an understanding of the partnership accounts is important together with the implications of buying into practice premises. It is equally important to understand your responsibilities to HMRC moving into self-assessment and reporting pensionable earnings to PCSE. 

If you are a new partner and would like information on this program please get in touch with our team.