Self-employment V’s Limited Company for doctors
Many doctors forums are abuzz with ways to save tax and here at Medics’ Money one of the common questions we get asked from self-employed Consultants GPs and Locums is
“Should I start a limited company to pay less tax”
Our advice? Everyones situation is different and you should consult a qualified specialist medical accountant. David Elliot, Tax director from specialist medical accountants BW Medical Ltd gives you a few things to consider.
Do you need the income to live on?
| YES | NO |
| Definitely self-employed | Possibly Limited Company |
Do you want to pension the income?
| YES | NO |
| Definitely self-employed | Possibly Limited Company |
Do you have an offset mortgage?
| YES | NO |
| Definitely self-employed | Possibly Limited Company |
Do you want to keep your financial affairs confidential?
| YES | NO |
| Definitely self-employed | Possibly Limited Company |
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The above questions are not an exhaustive, but they do highlight the need to take specialist advice before any decision is made and the examination of personal circumstances and requirements cannot be overstated. Every individual’s circumstances are different in terms of where they are on their career path, what their financial requirements are plus what plans they are making for retirement.
Your accountant will certainly benefit from additional fees if you decide to set-up a limited company but will the additional accountancy costs and potential loss of future pension negate the tax savings?!
Medics’ Money is run by doctors and finance experts, for doctors. Our free financial CPD gives you all the knowledge you need to take control of your finances.Join 30,000 doctors and receive free, exclusive, financial CPD for doctors in your inbox.
Seek qualified specialist advice from a specialist medical accountant so you can make an informed financial decision.
You can book an initial free consultation with BW Medical through Medics Money here.
