As a Doctor but also a Chartered Accountant and Chartered tax advisor I frequently come across colleagues who are paying too much tax. Engaging an accountant with the specialist knowledge of the medical sector would be one way to avoid this. But with time short due to rota gaps, exams and increasing workload, many doctors put off looking after their finances, potentially costing themselves thousands. Here are a few common situations where you would benefit from using an accountant with specific knowledge of the medical sector:
Do you pay into the NHS pension scheme? Are you aware that if you and your employer contribute too much then you could suffer a tax charge? The rules are extremely complex but we can connect you to an expert to help you. If you haven’t done so, check your online pension statement via https://www.nhsbsa.nhs.uk/employee-section If you have a taxable income greater than £110000 pa or gross of £150000 or more you could get a large annual allowance tax charge. We can match you with a specialist today who can advise you on pension issues.
This scenario has tax and pension implications and professional advice and planning could save you a lot of money. Your National Insurance position needs to be carefully calculated to avoid paying too much tax. If you work via a limited company then advice from an accountant should be sought due to recent changes in IR35 legislation. Find an independent specialist medical accountant and book your free initial consultation here.
If you are self-employed you will be responsible for telling HMRC how much you earn and paying the tax on your profits via Self-assessment. Whilst it is possible to submit self assessment yourself, if you are a self employed doctor we would recommend a specialist medical accountant. Find an independent specialist medical accountant and book your free initial consultation here.
£2,500 is the threshold at which HMRC require you to complete Self-assessment in order to claim tax relief on employment expenses. It’s perfectly possible to complete Self-assessment yourself, but once your finances reach this level of complexity it likely you would benefit from an accountant as any mistakes could end up costing you a lot more than an accountant’s fee. Find an independent specialist medical accountant and book your free initial consultation here.
If you are renting out a home you will likely need to declare your rental income and pay tax on any rental profits. An accountant will help you calculate these profits, offset some of the costs to reduce your tax bill, and help with the resulting Self assessment tax return which will be due. When you sell the property there are potential tax reliefs to utilise.