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Tax tips for GP trainees

 

 

Tax tips for GP trainees

New to GP training? Here Ed – GPST3, chartered accountant, chartered tax adviser and director of Medics’ Money – gives some top tips on important tax related topics you need to be thinking about.

Claim a tax rebate.

You can claim tax relief against your income tax bill on a whole host of expenses that you will incur as a GP trainee – from your RCGP fee to the AKT and CSA examination fees (you can also claim for resits if, unfortunately, you find yourself in this position). This is on top of other common expenses you will incur such as your GMC fee, any MDU or MPS fees and BMA fees if you are a member. Keep a record of these expenses so that you know how much you have paid. You can make a claim for the current tax year and the previous four (so if you have not claimed already you can claim for any fees incurred in your F1 and F2 years). Note that in the UK the tax year runs from 6 April to 5 April. For more information on how to claim income tax relief on your professional expenses we’re also here to help with that – download your free guide at: https://www.medicsmoney.co.uk/free-guide/?mmref=5dc9ae58bda85
Note that you will need a Personal Tax Account in order to make your claim.

You need a “Personal Tax Account”.

What is this I hear you ask? As the government moves to make our tax affairs as electronic and automated as possible it has rolled out the Personal Tax Account and everyone can set one up. This provides you with a wealth of information online – the information that HM Revenue and Customs or “HMRC” hold about you, from your current and previous jobs each tax year to the tax and national insurance you paid and your tax code (see below). This is incredibly useful in particular because HMRC often hold incorrect information which then may result in you paying more tax than you should do. A common problem occurs when HMRC think you have two jobs especially if you move trusts in August or locum. For a handy guide to setting up your personal tax account simply go to our website here: https://www.medicsmoney.co.uk/hmrc-personal-tax-account-step-by-step-guide-for-doctors/?mmref=5dc9ae58bda85

Keep an eye on your payslip as this is often wrong.

For an explanation on what your payslip shows we have created another handy blog which you can check out here: https://www.medicsmoney.co.uk/doctors-pay-slip/?mmref=5dc9ae58bda85 . If you notice any mistakes, get in touch with your payroll department. Some doctors ask us if they need an accountant to help with payroll problems; we would strongly suggest trying to resolve these yourself before asking a professional.

Keep an eye on your tax code.

Your tax code is calculated by HMRC and is used by your trust’s payroll to determine how much income tax you should pay. A big problem for Doctors is that it is not uncommon for HMRC to tell your payroll to apply the wrong tax code and this in turn may result in you overpaying income tax. For a guide on what your tax code is, how to check it and how to correct any errors go here: https://www.medicsmoney.co.uk/is-your-doctors-tax-code-correct/?mmref=5dc9ae58bda85

Mileage allowance.

You can claim “mileage allowance” –  tax relief for using your own car – on journeys from your home to locations which are not your usual place of work and which are mandatory for your training (for example if you have mandatory teaching at a different hospital). For further information please go here: https://www.medicsmoney.co.uk/doctors-tax-relief-on-mileage-and-travelling-for-work-using-own-car/?mmref=5dc9ae58bda85

Get a specialist medical accountant.

As you progress in your career you will likely need a specialist medical accountant – for example if you become a locum GP or a GP partner. To find out who needs an accountant and why they are important see: https://www.medicsmoney.co.uk/do-i-need-a-specialist-medical-accountant/?mmref=5dc9ae58bda85

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