It is vital to keep records in the event that HMRC may open an enquiry into your Tax Return.
You will need to keep records of the following;
Please note, you must keep a record of all income and expenses. For self-employed taxpayers, records must be kept for five years after the 31st January deadline for that tax return and one year after the 31st January deadline for an employed post. So if you file the 2022-23 tax return, due 31 Jan 2024, the records are kept till 31 January 2025 if you are employed and till 31 January 2029 if you are self-employed.
Please note that the tax year runs from 6th April one year to 5th April the next.
Employed doctors
Self-employed
An example is included below;
Example A:
Tax year 2021/22 (6 April 2021 to 5 April 2022)
Total Tax Liability – £8,000
Payment | Amount | Due |
2021/22 | £8,000 | 31 January 2023 |
2022/23 first payment on account | £4,000 | 31 January 2023 |
2022/23 second payment on account | £4,000 | 31 July 2023 |
Example B:
Tax year 2022/23 (6 April 2022 to 5 April 2023)
Total Tax Liability – £10,000
Payment | Amount | Due |
2022/23 balancing payment | £2,000 (after deducting 2022/23’s first and second payment on accounts) | 31 January 2024 |
2023/24 first payment on account | £5,000 | 31 January 2024 |
2023/24 second payment on account | £5,000 | 31 July 2024 |
Newly self-employed earners are often caught out by the payments on account scenario.
Talk to our Tax Team for expert advice and guidance. BW operate a fixed fee billing policy which includes free telephone and email support. With BW you will receive a highly responsive and proactive tax service to ensure you can make informed financial decisions throughout the year. You can read reviews and book a free initial consultation with BW via Medics’ Money here.