Tax Returns for Doctors
11th November 2016
In the medical profession, the days of simple PAYE taxes are, if not exactly gone, at least heading that way. More and more often, doctors and others are running into problems over HMRC's Self Assessment tax return system. There are a number of reasons for this. In some cases, it's simply a matter of making decent money. Income over £100,000 puts you squarely in HMRC's sights for Self Assessment purposes. Sometimes, the reasons are more complicated, involving multiple sources of income or self employment from a private practice. Whatever the reason, many healthcare workers are finding themselves getting to grips with Self Assessment and tax refunds.
There are a few key things to watch out for in the Self Assessment world. Arguably the most important is the amount of responsibility it loads onto your shoulders. There are strict deadlines to hit, and harsh penalties for missing them. Missing a filing date by a single day costs you an automatic £100, and the bill just ratchets up from there.
There's also some paperwork involved, and some pretty deep pitfalls to tumble into if you don't keep your records in order. Even if you manage to avoid the worst dangers of fines and penalties, you might end up missing out on allowable expenses. Depending on your situation, there may be a number of unavoidable costs of your work that qualify for tax relief. Knowing what you're entitled to, and how to get it, can go a long way toward making the tax pill a little easier to swallow.
Here are a few examples of expenses that can be be claimed under the flat rate expenses system and are often overlooked.
- Subscriptions and fees for professional bodies (BMA, GMC, etc.).
- Work-related travel expenses (including accommodation, food, etc.).
- Costs for buying necessary medical equipment.
- Certain training costs, where they are strictly necessary.
Depending on your circumstances, claiming correctly for expenses like these could bring down your tax liabilities considerably. Even if you're working strictly PAYE, you might be able to claim a tax refund for your work costs.
The main thing to bear in mind is that there's help available. RIFT Tax Refunds are the UK's leading tax experts. We've been fixing people's tax problems since 1999, and have specialists for helping those in the medical profession.
Whatever questions you have or advice you need, get in touch with RIFT. Our Self Assessment tax return service can make the most of your finances, while our refunds department keeps the taxman honest. Call or email to find out more about how we can help you.