The average earnings before tax of contractor GPs in the UK fell to £106,072 in 2007/08 – a reduction of 1.5 per cent since the previous year, according to a report from The NHS Information Centre.

An analysis of tax returns showed that while average gross earnings for contractor GPs in the UK rose to £251,997 (an increase of 1.9 per cent since 2006/07), the increase was more than offset by rising average expenses which were £145,925 in 2007/08 (an increase of 4.5 per cent since 2006/07).

The report presents provisional results of the GP Earnings and Expenses 2007/08 Enquiry and has been agreed by the Technical Steering Committee which includes representatives from the four UK health departments, NHS Employers and the British Medical Association.

Because it reflects earnings reported on tax returns, it includes private as well as NHS work and covers both full and part-time GPs.

The report also found that for contractor GPs – the majority of GPs in the UK – average earnings fell in each country of the UK, with average income before tax at:

• £110,139 in England (a decrease of 1.3 per cent since 2006/07)
• £87,371 in Scotland (a decrease of 2.3 per cent since 2006/07)
• £93,366 in Wales (a decrease of 4.5 per cent since 2006/07)
• £91,056 in Northern Ireland (a decrease of 2.4 per cent since 2006/07).

The results in the report are estimates based on samples, and therefore each figure has a small margin of error. In particular we cannot be sure that there is a real difference between earnings in Wales and Northern Ireland.

The report showed that contractor GPs working for practices that dispense prescriptions earned on average £125,165 (a decrease of 1.4 per cent since 2006/07) compared to ‘non-dispensing' GPs who earned on average £102,641 (a decrease of 1.4 per cent since 2006/07).

There are large variations in the pre-tax income earned by contractor GPs in 2007/08 with an estimated 6.9 per cent of GPs earning £50,000 or less before tax while an estimated 0.8 per cent of GPs earned £250,000 or more before tax.

The average income before tax for salaried GPs in the UK in 2007/08 was £55,790, an increase of 3.4 per cent since 2006/07.

The report is at: www.ic.nhs.uk/pubs/gpearnex0708

Also published today is “Investment in General Practice 2003/04 to 2008/09, England, Wales, Northern Ireland and Scotland” which is at www.ic.nhs.uk/pubs/investgpreport03-09

A more detailed and final GP Earnings and Expenses 2007/08 report is expected to be published in early 2010. Ends

Notes to editors

1. The NHS Information Centre is England's authoritative, independent source of health and social care information. It works with more than 300 health and social care providers nationwide to provide the facts and figures that help the NHS and social services run effectively. Its role is to collect data, analyse it and convert it into useful information which helps providers improve their services and supports academics, researchers, regulators and policymakers in their work.
2. The NHS Information Centre also produces a wide range of statistical publications each year across a number of areas including: primary care, health and lifestyles, screening, hospital care, population and geography, social care and workforce and pay statistics.
3. The data source for the survey is HM Revenue and Customers' (HMRC) tax self assessment database, which covers earnings and expenses from all self-employed professional earnings sources.
4. The results in the report are estimates based on samples, and therefore each figure has a small margin of error. In particular we cannot be sure that there is a real difference between earnings in Wales and Northern Ireland.
5. The report contains information on contractor GPs – ie GP partners – who form the majority of the workforce. The results for contractor GPs have been adjusted to exclude employer's superannuation contributions. The report also contains results for salaried GPs, which have been adjusted to include employee's superannuation contributions, thereby putting results for contractor and salaried GPs on the same basis.
6. GP employment definitions: A contractor GP, previously referred to as a principal GP, is a practitioner who has entered into a contract with a Primary Care Organization (PCO) to provide primary care services. This may be as a single-hander, or as part of a partnership. A contractor GP may employ salaried GPs. A salaried GP is employed by the contractor GP(s) of a practice; they may also be employed by the Primary Care Organisation (PCO). The cost of employing a salaried GP could form part of the employee expenses of contractor GPs. If the salaried GP is employed directly by a PCO then the ‘employer' GP's tax return will not have incurred the expense.
7. For media enquires please call 0845 257 6990 or contact

• Sarah Dahlgren on 0113 254 7272, sarah.dahlgren@ic.nhs.uk or
• Kristina Fox on 0113 254 7120, Kristina.fox@ic.nhs.uk