We work closely with salaried GPs to simplify the accountancy and tax process and provide an effective solution to meet your specific financial needs.
Our expert team can:
- Advise and manage tax refunds on professional fees and subscriptions
- Prepare and submit your tax return
- Ensure your tax code is correct and manage your affairs with HMRC
- Guide and support you through the financial implications of becoming a GP principal
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We offer a diverse range of accountancy and financial planning services to salaried GPs.
If you are a salaried GP and have savings income, locum income or rental income you are legally required to complete an annual income tax return.
The return must detail all income generated, as well as any capital gains revenue and any claims for expenses such as:
- Professional fees and subscriptions
- Pension payments
- Motor expenses
- Charitable donations
- Course fees
- Medical equipment
Tax returns are often complex and time consuming. Our experience and understanding of the medical industry enables us to ensure your return is correct and that all possible claims are made to reduce any subsequent tax bill.
For your peace of mind and to help you plan ahead we offer a fixed fee for completing the return, which is agreed in advance. Working with you we will calculate the correct deductions and expenses keeping your tax liability to a minimum.
Tax rules governing personal expenses for salaried GP's are strict and must be closely adhered to. It is vital you understand the guidelines surrounding expense claims.
In the simplest of terms an expense is allowable for tax purposes if it is incurred 'wholly and exclusively for the purposes of the trade'. If an expense is incurred for more than one purpose - for joint personal use for example - a deduction for any identifiable proportion of the expense which is incurred 'wholly and exclusively for the purposes of the trade' is allowable.
As an employee you can claim motor expenses using the fixed profit car scheme, which allows a claim of 45p per business mile for the first 10,000 miles then 25p for each additional mile, and you must be able to support the number of business miles claimed.
Any medical equipment purchased is deductible if it is intended to be used 'wholly, necessarily and exclusively' in the performance of the duties of your employment. However there are some exceptions to this rule and we can advise you accordingly.
There are countless other expenses which could be claimed such as professional subscription and education course fees, and we provide all our GP clients with a simple yet detailed checklist and ongoing advice to ensure all allowable expenses are claimed.
Expense Claims in the Early Years
Many salaried GPs will have trained in a hospital as a Registrar before becoming a salaried doctor. Throughout this period you may not have completed a tax return or claimed a tax rebate in respect of professional fees and subscriptions. In many cases a significant tax rebate is often due and it is possible to make a claim up to four years in arrears.
We can assist you by assessing which expenses are tax deductible before advising as to how best to claim the tax rebate.
Tax overpayments are a common issue faced by many salaried GPs if their tax code is incorrect which is often the case if a doctor has more than one source of income or has not accounted properly for personal expenses.
Whatever the reason for the incorrect code, we are able to check the code at any time during the year before ensuring the correct tax code is issued. You then have full peace of mind that there are no unexpected costs at the end of each financial year.
The financial implications of becoming a GP principal are extensive and complex.
It is imperative that you have a full understanding of the financial stability of the practice, which can be gained through analysing the last three years' accounts, and any consequences for you personally before entering into a partnership.
What should you know?
- Is the practice financially well managed?
- What is your forecasted profit share?
- What are your forecasted drawings?
- How does the practice deal with the partners' income tax?
- Has anything affected the partnership profitability since the last set of accounts was filed?
We can review the accounts of your prospective GP practice and let you know how stable and attractive the partnership truly is based upon our understanding of the industry and our benchmarking of current relationships. We do this free of charge for our existing clients.
In addition, we can also review the financial requirements in the partnership agreement.
The introduction of the Tax Health Plan has far reaching implications for you.
Protection against the increased frequency and cost of tax enquiries is now essential and as such we offer a service to safeguard GP's from the potential significant costs of any such investigation. While additional tax liabilities are an issue, equally important are the professional fees, which could be incurred should there be a dispute with the tax authorities. We therefore recommend all our GP clients take advantage of our Tax Protection Service, which covers professional fees incurred in handling a dispute with H M Revenue & Customs.
Through an annual subscription the scheme enables us to manage the process effectively on your behalf and removes the risk of any unexpected fees or costs.