Finance and Taxation

Payments

Basic Pay: £3,660.25 (ST1-2),  £4,610.75 (ST 3)

(annually - £43,923 (ST1-2),  £55,329 (ST 3)

GP Flex Premium: £807.75* (during GP placements)

London Weighting: £108.17

Total: £55,778 (ST1-2), £67,184 (ST 3) 

Tax Code (standard): 1257L 

Deductions

NHS Pensions: £376 (ST1-2), £512 (ST 3)

(9.8% if salary is £32,692 to £49,078, 10.7% if salary is £49,079 to £62,924 and 12.5% if it's above £62,924*)

PAYE: £660 (ST1-2), £980 (ST 3)

(20% from £12,571 to £50,270 (ie. £7,540 or £628/month), then 40% from £50,271 and above**)

NI A: £260 (ST1-2), £280 (ST 3)

(8% from £12,571 to £50,270 (ie. £3,016 or £251/month), then 2% from £50,271 and above)

Take Home Monthly Salary: £3,373 (ST1-2), £3,846 (ST 3)

*GP flexible premium pay is non-pensionable.

**PAYE is calculated on taxable income, which is after NHS pension contributions have been taken from your basic pay and London weightage.

If you have student loans, your repayments will also be a key financial consideration. For most GP trainees, this means repaying loans taken out during medical school. The specifics of your loan repayments depend on the plan under which you borrowed the money:

• Plan 1: If you took out student loans in England or Wales before 2012, repayments are typically 9% of income above £22,015.
• Plan 2: For loans taken out after 2012, repayments are 9% of income above £27,295.
• Postgraduate Loans: If you have a postgraduate loan, the repayment rate is 6% on income above £21,000.

Student loan repayments are automatically deducted from your salary along with income tax and National Insurance.

As a GP trainee, you are entitled to enroll in the NHS Pension Scheme, which is a valuable benefit but also an essential part of your long-term financial planning. 

• Contribution Rates: NHS pension contributions vary based on your earnings, typically ranging from 9.8% to 12.5% of your salary.
• Benefits: The NHS pension provides a guaranteed income in retirement, which increases with inflation. 

You can also opt to reduce your pension contributions (via the opt-out option), but this is generally not recommended as it will impact your long-term financial security.

As a GP trainee you can take advantage of various tax reliefs and exemptions, helping to reduce their overall tax liability:

• Work-Related Expenses: You may be eligible to claim tax relief on certain expenses incurred as part of your training. This can include:
  • Travel costs between training placements (if you're required to travel as part of your job).
  • Professional subscriptions to organisations like the Royal College of General Practitioners (RCGP) and the General Medical Council (GMC).
  • Books and study materials: If you’re purchasing books, journals, or any other study resources directly related to your training, you may be able to claim tax relief on these.
  • Instruments: If you are purchasing any instruments for you clinic r professional use
• Tax-Free Allowances for London: If you’re working in specific areas of London, there may be further tax exemptions or allowances available due to your location.

Living in London can be expensive, so it’s important to budget carefully. Here are a few tips for managing your finances:

• Accommodation: Rent in London can vary significantly depending on the area, but it is often one of the highest costs for GP trainees. Consider options like flat-sharing or renting in less central areas.
• Commuting: Transport costs can add up quickly. If you’re commuting by public transport, look into discount cards like the Railcard or Oyster card to reduce costs. If you use a car, be mindful of congestion charges and parking fees.
• General Living Expenses: While groceries and other everyday costs can be high in London, there are ways to save money by shopping smart, cooking at home, and taking advantage of free or low-cost activities.

If you’re unsure about your finances or need help navigating your tax responsibilities, seeking professional financial advice can be worthwhile to look at. Many organisations, including the BMA (British Medical Association), offer financial guidance. You can also consult a tax adviser or financial planner for more personalised advice.