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Specialist medical accounting FAQs

Some frequently asked questions. Medics Money – The Mess is a doctors only facebook group where we can help you further.

Is Medics’ Money run by doctors?

Yes, Medics’ Money is led by Dr Tommy Perkins, a GP, and Dr Ed Cantelo who is not only a GP trainee but also a Chartered Accountant and Chartered Tax Advisor with nine years’ experience at PricewaterhouseCoopers LLP London.

Why did Ed and Tommy start Medics’ Money?
Medics’ Money is run by Dr Tommy Perkins and Dr Ed Cantelo, who is not only a GP trainee but also a Chartered Accountant and Chartered Tax Advisor with nine years’ experience at PricewaterhouseCoopers LLP London.

The problem

The cost of training is rising and the recent Health Education England document on improving junior doctors working lives identified ‘rising costs of developing as a professional’ as a significant cause of low morale. Surprisingly this document did not mention that claiming tax rebates could make training up to 40% cheaper. Unfortunately, a lot of the information provided to doctors to help them claim is out of date and unnecessarily onerous. Most of this information is vague, advises writing letters to HMRC and advises doctors to use “form P87”. The existing guidance often fails to explain the scope of all expenses that can be claimed. Using form p87 is NOT recommended by us as it allows for costly mistakes. It is also NOT necessary to write to HMRC even if claiming exam expenses. Our guides help doctors avoid these mistakes using HMRC’s online Personal Tax Account.

Our solution

Medics’ Money uses Ed’ s unique skillset to help doctors reduce the costs for doctors by claiming tax rebates for free and online. We can also connect doctors to our specially selected network of specialist accountants and advisors to empower doctors to make better financial decisions.

Our objectives

  1. To enable 100% of doctors to claim 100% of tax relief available using our free step by step guides. For those doctors who cannot claim themselves, we will recommend a specialist medical accountant, verified by Medics’ Money with reviews from doctors and practice managers. This will significantly reduce the cost of training.
  2. To empower doctors to make better financial decisions. We will do this by providing access to high quality advice from leading experts for free in our blog.

Our History

As trainees we were exasperated by the costs of training as a doctor and we found that many of our colleagues felt the same. Despite this, we found that many of our colleagues were not claiming tax rebates which could help them claim back potentially thousands of pounds.  Back in 2014 we began helping our friends and colleagues to claim tax rebates. Through word of mouth we grew until we had claimed over £300,000 of expenses on behalf of doctors. We realised many doctors were not claiming tax rebates, but as full time NHS doctors ourselves we recognised we couldn’t personally help every doctor. In the wake of the junior doctors’ strikes, several Health Education England reviews identified the rising cost of training as a key contributor to low morale, but surprisingly did not mention the opportunity to reduce the cost of training by up to 40% by claiming tax rebates. Colleagues were overpaying thousands in tax and little was being done to raise awareness and help them. In 2018, updates to HMRC’s Personal Tax Account software allowed us to use Eds expertise to write guides for doctors to claim these rebates themselves online. These guides will allow many more, potentially all doctors, to benefit from our expertise to claim a tax rebate.

However, we also recognised that some doctors need an accountant but struggled to find a good one. This led to them struggling on their own, making costly mistakes such as;

  1. Failing to claim all allowable professional expenses for all applicable tax years.
  2. Completing self assessment themselves, but not including ALL claimable expenses resulting in paying up to thousands of pounds extra tax
  3. Payroll errors that went undetected, resulting in paying too much tax.
  4. Using non-specialist accountants who had advised them to start a Limited company to “save tax” but had failed to claim expenses properly or advise on the implications of leaving the NHS pension scheme. Potentially wiping out any savings from working as limited company.
  5. Locum GP’s who were no longer covered by the NHS death in service benefits and had not arranged replacement cover, potentially leaving huge liabilities for their family if they should die.
  6. High earning doctors with a spouse as a lower rate taxpayer who had not taken advice on working tax efficiently.

So we began building a nationwide network of reputable specialised medical accountants. We verify each firm and reject any non-specialist accountants that don’t meet our high standards. We developed our website to match doctors to a specialist medical accountant.

We’re very much at the start of our mission, but our aims are:

  1. To enable 100% of doctors to claim 100% of tax relief available using our free step by step guides. For those doctors who cannot claim themselves, we will recommend a specialist medical accountant, verified by Medics’ Money with reviews from doctors and practice managers. This will significantly reduce the cost of training.
  2. To empower doctors to make better financial decisions. We will do this by providing access to high quality advice from leading experts for free in our blog.

 

About us

Dr Ed Cantelo – MBBS BA(Hons) MA(Cantab) ACA CTA – A Junior Doctor and a Chartered Accountant and Chartered Tax advisor specialising in personal taxation with PricewaterhouseCoopers in London for nine years. He completed medical school in 2012 and now uses his unique skill set to help doctors make better financial decisions running Medics’ Money, whilst also training as a GP in Chichester.

Dr Tommy Perkins – BSc(Hons) MBChB MRCGP PGDipClinDerm – Founded Doctors Tax Rebate in 2014 to help his colleagues reduce the costs of training. Doctors Tax Rebate became Medics’ Money in 2018. Likes hanging out with his young family and spending time on or in the water.

How is Medics’ Money funded?

Medics’ Money started because we wanted to help our friends and colleagues reduce the costs of training as a doctor. That ethos is the driving force behind Medics’ Money today. Our website is free for doctors to use. We charge accountants a small fee to appear on our site and for receiving referrals, ONLY if they pass our rigorous verification process. Ed and Tommy both work as Doctors in the NHS and all profits are re-invested into improving the range of services we offer to doctors.

Tax rebates FAQ

How much will I be able to claim?

The amount claimed can be up to 40% of the total amount you paid over the last 4 years, meaning our average doctors claims £1245. Use our free instant rebate calculator to find out how much you can claim.

How do I claim?

If you have time and your claim is straightforward, many junior doctors can use our step by step guides to claim. Download your free guide here. If your claim is complex, or you are not confident dealing with HMRC, we can match you to a Medics’ Money verified specialist accountant.

Can I claim the cost of professional exams e.g MRCGP, MRCS, MRCP, FRCA?

YES. We have helped doctors claim thousands of pounds of rebates  for examination expenses, but the criteria are specific. Either download our step by step guide or let us find you a specialist medical accountant.

Be aware non specialist accountants may not be aware of updates in case law in this area specific to doctors and may give out of date advice. You CAN claim for examination expenses providing certain criteria are met and this is as a result of an update to case law in 2010 – CRC v Banerjee [2010] EWCA Civ 843.

Can I claim for resits of exams?

YES. The team here at Medics’ Money have enough letters after their names to know that exams are HARD and passing first time is difficult.

Should I claim myself or use a Medics’ Money accountant?

If you have time and your claim is straightforward, you can use our step by step guides to claim yourself. If your claim is complex, or you are not confident dealing with tax and HMRC, get a free quote from a Medics’ Money verified specialist accountant here. Complex claims that would benefit from using an accountant include those that exceed £2500 of expenses in any year, multiple examinations or courses and travel, or those completing a self assessment tax return. Claiming incorrectly can cost you thousands of pounds and a good accountant will cost you a few hundred pounds to do the claim for you.

Time limits for claiming back overpaid tax

HMRC impose strict time limits for claiming back tax – 4 tax years. We would always recommend claiming as soon as possible.

Expenses incurred in tax year Claim by
Tax year 2015/16 (6/4/15 – 5/4/16)5/4/20
Tax year 2016/17 (6/4/16 – 5/4/17)5/4/21
Tax year 2017/18 (6/4/17 – 5/4/18)5/4/22
Tax year 2018/19 (6/4/18 – 5/4/19)5/4/23

 

Do I need receipts?

Not to make your claim, but in the event of any queries by HMRC you need to be able to produce receipts. However most of this information can easily be obtained. For example if you log on to your GMC account. Then click “My Account” and “Payment History” all your GMC fees receipts are there. Download our step by step guide to reclaiming tax here which shows you how to find receipts easily.

A CPD course is mandatory - can I claim a rebate?

Unfortunately not, HMRC guidance is very specific that a course or qualification being mandatory does not mean tax can be claimed on it. If you have significant amounts of courses we would always recommend using a specialist medical accountant as tax law is complex in this area and any mistakes could cost you a lot of money. You can get a quote from a Medics’ Money verified specialist accountant here.

If your interested you can read the HMRC guidance here https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32530

Why would I have overpaid tax and why would I be due a rebate?

HM Revenue and Customs allow tax relief on professional expenses that we as Doctors have to pay in order to do our jobs. For example, if you pay £425 to the General Medical Council, every year you are entitled to tax relief on this amount (usually at 40% of the amount paid). So for example for £425 of GMC fees you would be due a refund of £170 per year (40% of £425). If you haven’t claimed before you can backdate the claim for the previous 4 tax years. (£680) If you also pay money to e.g. Royal College General Practitioners, MDU, British Medical Association or a host of other Royal Colleges and societies you could be owed thousands of pounds in overpaid tax. You may also be entitled to claim a tax rebate on examination expenses such as MRCP, MRCGP, MRCS, FRCA, etc.

What can I claim for?

Our guide gives you guidance on what you can claim but in general a doctor on a training contract can usually claim GMC, BMA, Royal college, indemnity and examination expenses including in some circumstances travel to and from the exam and accommodation expenses. We’re often asked if there’s a definitive list – there isn’t as such, but HMRC does have a list of professional bodies approved for tax relief which is accessible here HMRC List 3.

However List 3 isn’t very intuitive to search. For example the GMC appears in the M section as “Medical Council General”. Similarly, the BMA appears in the M section as “Medical Association British”. This makes it tricky to use, but our free guides give you speciality specific guidance on what you can claim to make things easier.

It’s important to realise that what you can claim depends on your employment status and if you are self employed or working via a Limited company we would STRONGLY advise you to use an accountant.

I’ve claimed before. Do I need to claim each year?

The short answer is yes. If you have claimed yourself or used a non specialist accountant it would be worth you downloading our free guide to make sure you have claimed everything. The long answer is, if your expenses have changed in anyway year to year since you claimed, then yes you do need to update HMRC to make sure you’re paying the right amount of tax. It’s also good practice to check your tax code to see how much expenses are included in your tax code and our blog provides information about how to do this yourself for free.

My fees are paid in January but the tax years runs from April - April

So if you paid £250 on 1st Jan 2015 then the entire amount falls into the 2014-15 tax year (as it was paid between 6 April 2014 and 5 April 2015) and you do not need to do any calculations. If £350 was paid on 1st Jan 2016 then the entire amount falls into 2015-16. You do not need to take daily rates or pro-rata any expenses – all that matters is the date that the payment was made.

Why don't doctors claim tax rebates?

Doctors told us they found the claims process difficult, not helped by the often conflicting and out of date information provided by non experts. In addition HMRC’s guidance was confusing to many. There were several ways to claim: some could claim by phone, some by post, some by form p87 and some would need to do self assessment. Small mistakes could cost thousands, for example we have doctors whose claims were rejected because they wrote “British Medical Association” or “BMA” and not “Medical Association, British” which is how it appears in HMRCs manual! In 2018 HMRC upgraded its new online Personal Tax Account to include the ability to claim expenses online. This greatly simplified the process of claiming, but still required some knowledge of what could and could not be claimed. We used our expertise to produce step by step guides to help junior doctors claim themselves using this new system. We extensively tested these guides on friends and colleagues, refining them as HMRC’s software continued to evolve. This led us to where we are today, Medics’ Money is helping junior doctors claim thousands back in overpaid tax, significantly reducing the cost of training. We are working with leading institutions including Royal Colleges who recognise the value of our solution to improve doctors’ finances and morale and we are grateful for their support.

We’re very much at the start of our mission, but our aims are:

1 – To enable 100% of doctors to claim 100% of tax relief available using our free step by step guides. For those doctors who cannot claim themselves, we will recommend a specialist medical accountant, hand picked and verified by Medics’ Money with reviews from doctors and practice managers.

2 – To empower doctors to make better financial decisions. We will do this by providing access to high quality advice from leading experts.

Accountant questions

How much does a medical accountant cost?

Our software will display guide prices to give you an idea of how much it will cost. Compare prices here

https://www.medicsmoney.co.uk/accountant-search/

These are example prices. The exact price will depend on your specific circumstances. Our service allows you to compare Medics’ Money verified accountants and in some cases get a quote online for free. For straightword clearly defined tasks you can expect to have a fixed fee quote from your accountant. But more complex tasks will be priced on an individual basis specific to your situation. As a general rule of thumb once you are a higher rate tax-payer, earning over £46,350 per year with several postgraduate examinations and perhaps some ad-hoc locum work you would likely benefit from an accountant.

What are the benefits of using a Medics’ Money verified specialist medical accountant?

All Medics’ Money accountants have been handpicked by us and undergone rigorous verification checks. Each accountant has independent reviews from verified doctors like you, which we constantly monitor to ensure the highest standards. Our software only matches you with the most suitable accountants for your specific accounting needs. Doctors’ tax is a complex area – the NHS pension, tax code errors by payroll, private practice income and NHS income, superannuation, GP practice accounts. Our specialist accountants have the specific knowledge and experience in these areas to make sure your finances are taken care of.

Can I switch Accountant?

Yes, you can switch accountants if you are unhappy with your current accountant. If you do wish to change accountants we can match you to an appropriate specialist medical accountant, verified by Medics’ Money and with reviews from doctors. Simply let your old accountant know you wish to disengage from their services and your new Medics’ Money specialist will contact them and take care of everything.