If you a trainee doctor undertaking core or speciality training as part of a UK employment contract, then there are a number of tax reliefs you may be eligible to claim.
This applies to members of the the Royal College of Physicians meaning the fees that you have to pay to sit MRCP(UK) and SCE (Speciality Certificate Examination) exams are now eligible for tax relief. Providing that you met the cost yourself, without reimbursement and that your employment contract specifies a training element.
Top tips for Physicians tax relief claims
- An initial claim can be backdated for 4 tax years and you get an interest payment on the previous years.
- It doesn’t matter if you have worked for more than one employer during the time you are claiming for.
- A tax relief claim has no effect on your current employer and they are not liable to pay any tax rebate.
- The amount you receive back is variable and it relates to your tax bracket. As a guide: if you are in the higher rate tax bracket, then you could receive 40% of your total expenses; if you are in the basic tax band, then you could receive 20% of your applicable expenses bill.
- After making a claim, your tax code will probably be adjusted to make sure that you save on your tax bill into the future.
Other applicable tax reliefs for Physicians
Tax relief regulations are notoriously detailed as HMRC cater for every profession and employment situation. The tax reliefs that have been most successfully claimed by doctors are listed below.
As each individual claim is considered on its merits by HMRC, it is imperative that your claim contains all of the reliefs that apply to your particular financial situation.
- Enrolment charges for the Joint Royal Colleges of Physicians Training Board
As a trainee, registration with the JRCPTB is compulsory and therefore HMRC has made this an expense that is allowable for tax relief. Any fees paid from May 10th 2013 are eligible but, unlike many other tax reliefs, not before this date. It is important that you keep some kind of payment confirmation as evidence of this payment, as the organisation itself doesn’t issue receipts. For example, the PayPal authorisation code.
- Training and Education Costs
Even though continual CPD is a crucial aspect of maintaining professional registration, it is difficult for many doctors to claim tax relief on these costs. Claims have usually only been successful when there is a specific training element written in to your employment contract. Then, course fees, travel and other expenses have been allowed by HMRC. You must be able to prove that the training is “in the performance of employment duties” directly.
- Using your own car for work travel
Unfortunately, this does not cover the journeys you make between your home and a permanent workplace. But if you are travelling between different work locations or based at a ‘temporary workplace’, then you may be eligible to claim. The latter could also involve the possibility of claiming for mileage, as long as you are not at that specific workplace for more than 24 months.
- Working from home tax relief
If your employment contract requires you to work from home – and that does have to be explicit – then there are a range of tax reliefs you can apply for the costs you incur.
- Purchases of equipment, uniform or protective/specialist clothing
Any equipment, including clothing, that you only use for work could form part of your claim. Receipt evidence is usually required to support this type of claim.
- Washing work clothing or uniform
You can claim for the cost of laundering your work clothes or uniform if there are no facilities at your workplace.
- Professional Indemnity Insurance
It is important that your insurance provider is on HMRC’s ‘allowable’ list for this claim to be successful, for example the MDU.
- Subscriptions to professional journals and membership charges for Trade Unions and other professional bodies
Your organisation must have an agreement with HMRC in place before you are able to claim tax relief for this work expense. For example, GMC fees are an allowable expense because they have such an agreement.
How do I make a Physician tax rebate claim?
After going through the mass of HMRC regulations and deciding which tax reliefs apply to you, you need to invest time and energy into putting together a claim.
You can do this through your Self-Assessment Tax Return if you are already using that system; or you can can fill in Form P87 which can be submitted online or by post to HMRC.
Tony Shanks