Congratulations on your qualifications. We know that it has been a long and tough road. Are you looking to start your own medical practice and unsure of where to begin?
Thrive has put together a quick and easy list of the major aspects of administration that you would need to consider should you wish to start your own practice.
About us
Thrive is an accounting practice that has been assisting many medical practices with compliance, tax advisory, reporting, book keeping, payroll and accounting services. Call us on 082 325 1022 for a chat or drop us an email info@thrive.africa.com . We are happy to guide you through this process.
Decision on the legal entity type
We recommend new practices to start trading as a sole proprietor until the monthly income gets to a threshold of about R70,000 per month. It is the easiest and cheapest way to trade. Once the threshold is reached, it becomes more tax efficient to trade as a company as the maximum tax rate will be 33.6% as opposed to 45% for a sole proprietor.
Apply for a medical practice number, register with BHF as well as HPCSA
BHF is the Board for Healthcare Funders. This is a Board set up by medical schemes within the Southern African community. The HPCSA, together with the 12 Professional Boards under its ambit, is established to provide for control over the education, training and registration for practicing of health professions registered under the Health Professions Act.
Decision on whether to outsource or insource your medical billing
If you are not strictly a cash practice, another consideration is the aspect of medical aid submissions. Some practices outsource this to a billing company whilst others do this in-house. Billing companies typically charge up to 6% of total amount collected for their services rendered.
VAT registration
Needed once the practice bills R1m within any 12 months period.
PAYE and UIF registration
This is needed if the practice is seeking to employ anyone. It is also needed if you are to declare yourself a salary.
Other compliance requirements
Dividend tax – a potential benefit for small businesses, Workman’s compensation and Skills development levy may be applicable.
