Pharmacy
Accountants for community pharmacy and pharmacists across Northern Ireland. Pharmacy accounts, HSC and private income, locum arrangements, stock and incorporation — for independents, small groups and locum pharmacists.
What makes pharmacy different
A community pharmacy is a retail business, an HSC contractor and a professional practice at the same time. Income arrives from the Business Services Organisation on one timetable and over the counter on another, margins on dispensing are set for you rather than by you, and a large part of your balance sheet is sitting on the shelves. Generic accounts prepared without that understanding tell you very little.
Your stock figure is a guess and it is moving your profit
Stock is one of the largest numbers in a pharmacy’s accounts and one of the least reliable. Valuation method, short-dated lines, and the treatment of goods on account all move reported profit — and therefore your tax bill. A defensible stock figure is worth the effort it takes.
You cannot tell whether the private side is actually making money
Travel clinics, vaccinations, private consultations and retail sit alongside dispensing income, and most systems report them together. Splitting them out is usually the fastest route to a better year, because it shows you which parts of the business deserve more of your time.
Your locums are treated as self-employed and nobody has revisited it
Employment status for locum pharmacists is tested the same way HMRC now tests every other off-payroll arrangement — control, right of substitution, financial risk and mutuality of obligation. The same tightening that caught dental associates from April 2023 applies here. A pharmacy engaging regular locums under an old arrangement is carrying PAYE and National Insurance exposure it may not have priced.
You are incorporated, and April changed the arithmetic
From 6 April 2026 dividend tax rose two percentage points — 10.75% at basic rate and 35.75% at higher rate. Corporation tax remains 19% to £50,000 and 25% above £250,000, with an effective 26.5% between. If your salary and dividend split was set before the Autumn Budget 2025, it is worth rechecking.
You are buying or selling a pharmacy
Goodwill, the contract itself, stock at valuation and the property all have different tax treatments, and the buyer’s position rarely mirrors the seller’s. These things are settled at heads of terms, not afterwards.
Locum pharmacists
If you locum on a self-employed basis you are running a small business, whether it feels like one or not. That means self assessment, a decision about whether incorporating is worth it, and — from April 2026 — Making Tax Digital for Income Tax if your gross income exceeds £50,000. That threshold falls to £30,000 in April 2027 and £20,000 in April 2028, so most regular locums are in scope now or shortly will be.
Capital allowances on the premises
Fitting out a dispensary, consultation room or robot dispensing system attracts relief, but the route changed this year. The main pool writing down allowance fell from 18% to 14% from April 2026, the Annual Investment Allowance is unchanged at £1 million, and a new 40% first-year allowance arrived on 1 January 2026 which — unlike full expensing — is available to unincorporated businesses too. Worth planning around before you spend rather than claiming afterwards.
What we do for pharmacy clients
Annual accounts and corporation tax. Self assessment for pharmacists and locums. Stock valuation and gross margin analysis by income stream. HSC and private income reporting. VAT returns and partial exemption where it applies. Payroll, auto-enrolment and CIS. Employment status reviews for locum arrangements. Incorporation modelling. Buying, selling and valuing a pharmacy. Capital allowances on fit-out. Making Tax Digital setup. Pension and NHS/HSC scheme questions for employed pharmacists.
Questions we get asked
Should I incorporate my pharmacy?
It depends how much profit you take out versus leave in the business, whether you own the premises, and whether you expect to sell within a few years. The dividend rise in April 2026 narrowed the advantage but rarely removes it. We will model both and show you the numbers rather than the theory.
How should I value stock at the year end?
Consistently, at the lower of cost and net realisable value, with short-dated and obsolete lines dealt with properly. The method matters less than applying the same one every year and being able to support it.
Do I need to worry about Making Tax Digital?
If you are a self-employed locum or have rental income over £50,000 gross, yes — from April 2026. If your pharmacy trades through a limited company, MTD for Income Tax does not apply to the company itself.
Do you act for pharmacies outside Mid Ulster?
Yes. We act for pharmacy clients across Northern Ireland and into the Republic. Most of the work happens by email and video call, with meetings in Castledawson when you want one.
Talk to us
Bring your last set of accounts and a recent month of dispensing and retail figures. We will tell you where the margin is actually going and what we would do differently.
Book a free consultation or call 028 7946 5353.
Figures are for the 2026/27 tax year and are correct as at 26 August 2026. This page is general guidance, not advice — exceptions apply and figures are simplified. Please contact us before acting.