Frequently Asked Questions
A. JOINING THE PEPS SCHEME AND ELIGIBILITY REQUIREMENTS
1. Is it mandatory to join the PEPS scheme?
2. What happens if I don't join the PEPS scheme?
There will be no changes to the monthly payment arrangements if you do not join the PEPS scheme. Payments for your NHS pharmaceutical service provision will continue to be paid by the NHSBSA.
3. How do I know whether I am eligible to enrol on the scheme?
All Pharmacies in England providing NHS pharmaceutical services (including Local Pharmaceutical Services) are eligible to join this scheme. However, your NHS payments should be clean and unencumbered. This means the payments should not be sold/factored/offered as security/collateral or subject to any security interest over the payment. Your existing financers may have applied these restrictions. Please get in touch with your accountant or legal advisor to get more information.
4. What happens if my payments are not clean and unencumbered, do I automatically become ineligible to participate in this scheme?
No. Even if your existing financers have placed charge/restriction on your payments from the NHS, your financer may be willing to remove these charges or restrictions. Your accountant or legal adviser should be able to help you in this regard.
5. What are the implications of joining this scheme?
By joining this scheme, pharmacies are:
- Confirming that their existing financial arrangements allow them to enter in this scheme i.e., their payments from NHS are not sold / factored / offered as security or as collateral / subject to a security interest over the payment / should not have fixed or floating charge / any other such restriction from your financers that disallow you to participate in this scheme.
- Agreeing to transfer your right to receive approved payments from NHSBSA in exchange for receiving early payments to the extent of the approved amount payment as calculated by NHSBSA, less the finance cost.
- Giving Greensill Capital U.K. Ltd the legal right to collect from NHSBSA the full amount of the approved payment on its original due date, as pharmacies have already received early payment from and transferred this right to Greensill Capital (UK) Ltd.
- Agreeing to the Terms and Conditions of the Pharmacy Contractor Agreement (including the deduction of the finance cost which is calculated as: Approved Invoice) approved amount of the payment x a finance cost of the 0.5% p.a. above the prevailing one-month LIBOR x the number of days between the payment and the due date of the relevant Approved Invoice.
The first bullet point above is critical, and pharmacies should consult their accountants or legal advisors.
6. What other changes are required for participating in the scheme?
As part of the scheme the pharmacy can choose two options
- Despatch prescriptions in time to secure delivery to the NHSBSA by the 3rd day of the month. Note that if the 3rd day falls on a weekend or bank holiday then you will need to secure delivery on the next working day after the 3rd. Under this option, the earlier payment would then be made available as per the payment schedule on point 13 rather than the standard payment date.
- Despatch prescriptions from the pharmacy not later than the 5th day of the month (as now) to secure delivery by the 8th day of the month (note if the 8th day falls on a weekend or bank holiday then you will need to secure delivery on the next working day after the 8th). The earlier payment would then be available. Under this option, the earlier payment would then be made available per the payment schedule on point 13 rather than the standard payment date.
Other than that there are no changes.
- All existing requirements of NHS Pharmaceutical Services provision remain unchanged.
- Pharmacies will continue to send the prescriptions to NHSBSA for reimbursement i.e., accounts should be submitted in a timely and secure manner, having been correctly sorted.
- NHSBSA will continue to calculate the payment value as they do currently when calculating the advanced payment.
- Instead of NHSBSA paying you, Greensill Capital (UK) Ltd will make the payment into your designated bank account (less interest).
7. What are the documentation requirements for the scheme?
Documentation requirements for joining the PEPS programme consist of the following:
- Consent form to opt in to the PEPS scheme
- Taulia T&C’S and confirmation of contact details which will consist of the following:
- Named individual with authority to confirm agreement to the PEPS scheme
- Email address
- Bank account details
B. PRICING & PAYMENT
8. Can I sign up for the scheme if I am currently using my payments to obtain financing?
As part of signing up to the Scheme, we ask that you represent that your payments are free and clear of any security interests, liens, or claims of any kind at the time of purchase by the bank.
9. What are the arrangements for new pharmacies to sign up?
10. What should I do if I want to get detailed information on the NHSBSA advanced payment value?
NHSBSA will provide full details on the monthly payment, including any reconciliation adjustment resulting from the actual payment value for the previous monthly prescription cycle. These will be shown in the Schedule of Payments that you receive from the NHSBSA towards the end of every month.
11. What happens if I enrol for the Scheme but my prescriptions take some time to reach the NHSBSA?
If the NHSBSA does not have your end of month prescriptions and declaration to be able to calculate the advanced payment then early access to the payment will not be available that month.
On these occasions, assuming your prescriptions and declarations do reach the NHSBSA, the calculated payment will be made on the standard payment day by Greensill Capital UK. However, no interest charge will be applicable.
There are no changes to the current payment dates for pharmacy contractors who do not participate in the PEPS scheme. The standard payments dates are published on the NHSBSA website.
12. How will the payments be made?
Payments will be made per the attached schedule in point 15 assuming the FP34C Submission Document is sent within the defined timescales outlined.
Taulia will offer an automatic financing option only in the interim and NHSBSA will work with Taulia to provide a manual financing option in the near future.
Greensill Capital UK Ltd, on behalf of Taulia, will make payments directly to pharmacy contractors in the PEPS scheme.
13. What do you mean by pharmacy will be receiving early payment on a 'non-recourse' basis?
Non-recourse means Greensill Capital UK Ltd will seek payment from NHSBSA with regard to your NHSBSA-approved payments, and you will not be required to repay the amount of the early payment you received, even if Greensill Capital UK Ltd does not receive payment from NHSBSA.
14. What payment process does Taulia use to pay suppliers?
- NHSBSA's advanced payment (and balancing payment) value, less the interest payment, is paid to your bank account as per the payment schedule provided in point 15.
- Payment is made to the pharmacy in GBP.
- Payments previously paid by NHSBSA via BACS were normally credited to your account at 00:01 on the Payment Date published on the NHSBSA website. Taulia has slightly different payment timeframes and will make the advance payment at some point between 07:30 – 16:30 on the dates published in the payment schedule point 15.
15. Is there a detailed breakdown of timescales from submission of prescriptions to availability of funds?
The table below provides a summary of key submission dates.
||Pharmacy Submits Prescriptions
||Prescriptions received by NHSBSA
||File sent to Taulia by close of business
||Taulia makes payment to contractor by CHAPS or Faster Payment
|3rd||No later than 9th||12th||13th|
|5th||After the 9th||31st July||1st August|
|5th||No later than 8th||13th||14th|
|5th||After 8th||30th August||31st August|
|5th||No later than 10th||12th||13th|
|5th||After 10th||28th September||1st October|
|5th||No later than 8th||11th||12th|
|5th||After 8th||31st October||1st November|
|5th||No later than 8th||13th||14th|
|5th||After 8th||29th November||30th November|
|5th||No later than 10th||12th||13th|
|5th||After 10th||28th December||31st December|
D. INTEREST CHARGES
16. How does Taulia calculate interest charged to pharmacies under this scheme?
The charge for early payment consists of two factors:
Government Sponsored annual Interest rate
- Government Sponsored annual Interest rate (0.5% p.a.); and
- GBP LIBOR rate* (The current 30 day GBP LIBOR rate is 0.5%)
Through the programme, you are only charged for the number of days financed (typically 22 days on a 30 day term invoice).
Therefore, for 22 days early payment acceleration on an invoice valued at £1000, the estimated cost for early payment is £0.60p (or 0.060% of invoice value).
* LIBOR rate is the interbank lending rate for short term loans and the rate is incorporated in all forms of lending
17. What is LIBOR? (London Interbank Offered Rate)
LIBOR is the interest rate that banks charge each other for loans. It is a daily-published rate set by the British Banking Authority. GBP LIBOR is the benchmark rate for the pound sterling.
18. How often does LIBOR change?
GBP LIBOR changes daily, further information is readily available online if required
19. Are there any additional charges applied by Taulia other than the interest cost explained above and what notice period is required to opt out of PEPS?
There are no additional fees charged by Taulia other than the above interest cost of receiving payment earlier, which will be deducted at the time of making the earlier payment. Joining the scheme is free and opt in pharmacies can choose to leave the scheme without any costs, by giving 30 days notice to Pharmacyearlierpaymentscheme@taulia.com
20. What are the key dates?
Deadline for contractors to remain in the PEPS scheme for earlier payment for June dispensed prescriptions:
|31st May 2018
||1st July 2018
|First earlier payment will be:
||9th July 2018
21. What are the arrangements for signing up after the initial date?
22. How long does the Taulia on-boarding process take?
Once NHSBSA have received your completed documents as stipulated in point 7 the process of accepting your application and setting you up to receive advance payments will be completed within one calendar month. Please be aware than prescription batches need one month to be processed prior to advance payments being made. Note that prescriptions require a full calendar month before advance payments will be made available.
F. EXITING THE SCHEME
23. How would I exit the scheme and what are the potential consequences if do I choose to exit?
You can exit the scheme free of cost by giving Taulia 30 days notice in writing to the following email address: Pharmacyearlierpaymentscheme@taulia.com
After exiting the scheme, you will no longer be able to receive early payments under the scheme and NHSBSA will resume making your payments directly as per the standard processing timetable.
Please note on cancellation, you will be advised on when payments will made after opting out of the PEPS scheme.
24. Can I choose to dip in and out of the scheme?
In normal circumstances, once a contractor has chosen to exit the scheme we would not expect them to re-join the scheme. However, an application to re-join the scheme would be considered according to individual circumstances.
G. CHANGES TO OWNERSHIP AND NEW CONTRACTS
25. I have enrolled my company into the scheme and my company has since opened a new pharmacy contract. Will the new contract be included as part of the scheme or do I have to enrol again?
If your company has a YP code any new branches that you acquire and wish to add into the company YP notification should be sent to NHSBSA with the YP details they wish the branch to be attached. NHSBSA will then verify the branch OCS code connection with your company and at the correct time link the branch into your company YP. Notification of the branch OCS code will also be sent to Taulia.
26. I am in the process of buying my first pharmacy will I automatically join the scheme?
No, the scheme is not mandatory and new pharmacies will have discretion whether or not to join.
27. I have a pharmacy business with a group of pharmacy contract premises. Can I choose to enrol only some of the premises?
No, the scheme enrolment process is between the owner of the pharmacy business and Taulia. Where there are multiple pharmacy contracts as part of the pharmacy business, it would not be possible to split the pharmacy business into an opt-in group with the remainder opting out of the PEPS scheme.
H. QUESTIONS ABOUT TAULIA
28. Who do I call if I require technical support?
Taulia Technical Support is committed to building strategic relationships with its customers by providing consistent, dependable, and high-quality Support. Taulia offers multiple levels of Support depending on the technical or account specialisation required for a prompt response. Your ticket is prioritised based on the severity levels set upon ticket creation. You can call us at +44 1302 231188, or log a support ticket through the following link: Contact Support
. Our hours of operation are Monday through Friday, 8 am to 5 pm GMT, excluding bank holidays.
29. Who do I contact with queries?
Any queries related to the NHSBSA estimated payment value should be raised with NHSBSA directly. Any queries related to your setup, payment date, interest cost, should be raised with Taulia to Contact support as detailed in point 28.