Do all doctors need to complete a tax return?
Not all doctors are required to file a tax return. However, if you fall into any of the categories below it is likely that you are required to.
· The HMRC have sent you a tax return to complete
· Your total income is in excess of £100,000
· You have multiple sources of employment income
· You have a significant amount of NHS employment-related expenses to claim
· You are in receipt of self-employed private practice income
· You are a company director
· You are in receipt of other untaxed medical frees or rental income
· You have made a capital gain
· You have significant sources of investment income
· You have income from overseas
Please note that circumstances where doctors are required to file a tax return are not limited to the list above. Do not wait for the HMRC to notify you of your filing requirement, as missing the tax return filing deadline will result in penalties.
Tax Rebates for Doctors
There are a number of situations where a doctor might be entitled to tax rebate. Below is a brief list of some of the situations where a doctor will be due a tax rebate:
· If emergency or incorrect PAYE tax code has been operated on a doctors NHS salary
· The tax relief due on membership payments to professional bodies has not been claimed
· Tax relief on other job related expenses has not been claimed
· Higher rate tax relief on Charitable Gift Aid donations has not been claimed
· Higher rate tax relief on personal pension contributions has not been claimed
· Unreimbursed work related travel
· On certain types of medical equipment
The rules regarding tax deductions for doctors are extremely strict and complex and it is essential to follow them correctly.
Claiming Expenses as a Doctor
There are several rules that determine tax-allowable expenditure and differ depending on whether you want to obtain tax deductions against your NHS employed salary or untaxed self-employed earnings.
Legislation clearly states that for an expense to be claimable against tax it must be ‘wholly, exclusively and necessary’ for the performance of your duties.
Whilst rules are strict, we use our expert knowledge to help doctors identify unclaimed expenses. For instance:
· Professional Subscriptions
· Travel expenses between multiple hospitals
· Telephone expenses
· Education courses and conferences
· Medical Equipment