If you’re a Doctor you could be due a tax rebate because you incur costs to perform your duties.
Most doctors are eligible to claim tax relief for one or more reasons. Some of the most common reasons for a doctor to be entitled to tax relief are for:
1. Membership into a professional fees like the GMC.
2. The cost of professional indemnity insurance into the MDU for example.
3. Using your own car to travel to temporary workplaces. This could be travelling between more than one hospital or clinic.
We explain below some of the most common reasons why a Doctor could be owed a tax rebate because of their work related expenses.
Doctors tax relief for professional fees…
Criteria:
- You meet the cost of the professional fee into an allowable professional body
- You are not reimbursed for the cost of the allowable professional fee
Most, but not all, professional bodies that doctors may pay in to have an agreement with HMRC that allows for tax relief, you should check with HMRC before making a claim that the professional fees you pay are eligible for tax relief.
Doctors tax relief for professional Indemnity Insurance …
Criteria:
- You meet the cost of the allowable professional indemnity insurance
- You are not reimbursed for the cost of the allowable Professional Indemnity Insurance by your employer
As with claiming tax relief for professional fees, you can check with HMRC that the professional indemnity insurance company you pay is on their allowable list before you make a claim. We can do this for you as part of your claim.
Tax code change
If you make a tax relief claim for professional fees and/or professional indemnity insurance, your tax code can be changed to allow for the tax relief you are entitled to. This means you’ll make a continued saving in the future.
Doctors tax relief for business use of car …
Criteria:
- You use your own car for work purposes. This does not include normal commuting to one place of employment but refers to travel between different locations, such as different clinics, hospitals or patients homes, as part of your job. Business mileage can also be accrued if your employer requires that you move workplace to another location for a period that lasts, or is expected to last, for less than 24 months.
- Even if your employer pays you for mileage travelled for work purposes you can still claim tax relief if you are not reimbursed HMRC’s full mileage rate (45p per mile up to 10000 miles and 25p thereafter) or if you are paid the full mileage rate but it is taxed.
Doctors tax relief for equipment
Criteria:
- The equipment is purchased solely for work purposes
- The cost of the equipment is not reimbursed by your employer
- Proof of purchase is usually needed showing the date of purchase and cost
How much can I claim back as a Doctor?
The amount of tax relief you can claim for equipment purchases depends on which tax year the purchase was made and if a capital allowances claim has to be made for the purchase. A guideline would be 15% to 20% of the purchase total, depending on which tax bracket you pay tax in.
How do I make a Doctor tax rebate claim?
To submit your Doctor tax rebate claim you should complete HMRC form P87 employment expenses if you don’t complete a self assessment tax return.
Many Doctors complete a self assessment tax return due to higher earnings and or other having other income for example property income. If you complete a tax return you will need to include your work related expenses in the relevant boxes of the employment section of your tax return.
Tony Shanks