Doctors Tax Rebate guide

As a Doctor you face unique financial costs that directly impact your tax position. To help cover the cost HMRC allows you to claim tax relief on many of your work related expenses.

From GMC registration fees to professional indemnity insurance, Royal College memberships to travel between multiple NHS sites – these essential expenses are necessary for your job but can significantly impact your take-home pay.

Understanding the tax benefits available to you is essential so you can potentially reduce your tax liability and receive a tax rebate.

The tax relief available to Doctors is worth up to 45% (47% in Scotland) per tax year which gives you the opportunity to take advantage of valuable tax savings for the duration of your career.

This guide addresses common questions doctors have about tax rebates, providing clear, straightforward answers to help you understand your entitlements and the process for claiming them.

Whether you’re a hospital consultant, GP, locum, or doctor in training, the following FAQs will help you navigate the tax relief process efficiently and ensure you’re not paying more tax than necessary while carrying out your vital role in our healthcare system.

What are tax deductible expenses for Doctors?

Tax deductible expenses are work related expenses that you pay for personally and are not reimbursed in full and tax free by your employer.

These expenses can be claimed against your income tax and will typically result in a tax rebate for previous tax years and a reduction of tax due after a successful claim.

It’s important to note that HMRC (Her Majesty’s Revenue and Customs) has specific guidelines regarding what expenses are eligible for tax relief.

Doctor memberships and subscriptions tax relief

As an NHS doctor you can claim tax relief for certain professional memberships and subscriptions.

It’s best to keep track of your membership fees and subscriptions as they can contribute to reducing your overall income tax liability.

Examples of professional bodies whose memberships are considered tax deductible by HMRC include:

• The British Medical Association (BMA).
• General Medical Council (GMC).
• Medical defence union (MDU).
• Medical protection society (MPS).
• Royal college of surgeons (RCS).

Doctor training courses and books tax relief

Claiming tax relief on training courses and books can be a complex area.

HMRC allows tax relief for training courses and books if they are an intrinsic part of your employment and one of your job duties.

In such cases you will normally be able to claim for the costs of course fees and associated expenses like travelling to an event.

For example individuals who personally cover the expenses for their MRCS or FRCS examination and are currently engaged in a training contract as either core or specialty trainees have the opportunity to request tax relief.

Training courses for new medical qualifications

It’s important to note that costs associated with training for new qualifications or skills are not normally tax deductible.

For example if you choose to attend courses for personal interest or to maintain your continuous professional development (CPD), you cannot claim the costs of training or incidental subsistence.

Medical clothing and equipment

If you have personally paid for medical clothing and equipment necessary for your job, you can claim tax relief on these expenses.

Examples of tax deductible items include specialist footwear, stethoscopes, and operating glasses.

Remember to keep all relevant receipts as evidence of these expenses when making your claim.

Travel and subsistence tax relief

While you generally cannot claim travel expenses between your home and place of work, there are exceptions for temporary locations.

If you travel to temporary locations as part of your job, you may be eligible to claim the cost of travel and subsistence.

Subsistence refers to the cost of meals while you are away from your usual workplace.

Mileage tax relief to temporary workplaces

If you use your personal vehicle for work related purposes you can claim a set amount per mile against your taxes.

Eligible mileage does not include normal commuting to one permanent place of work. HMRC will only accept mileage that is incurred to what they class as a temporary worplace.

An example of a temporary workplace would be a clinic or hospital that you travel to for less than 24 months and isn’t classed as your permanet workplace as per your contract of employment.

The current HMRC approved mileage rates for cars are 45p for the first 10,000 miles and 25p thereafter.

It’s important to note that if the NHS reimburses you for your mileage expenses at the full AMAP rates you cannot make a claim.

If the NHS reimburses you for less than the approved mileage rates you can claim the difference.

How many years can you claim expenses for?

If this is your first time claiming a tax rebate HMRC allows you to go back up to a maximum of four tax years.

This means you may be able to make a backdated claim for multiple years worth of expenses at the same time.

Claiming your NHS Doctor’s Tax Rebate

To claim your NHS doctor’s tax rebate you need to keep all receipts for the expenses you want to include in your claim.

There are different methods for making a claim depending on the value of your tax rebate claim and your circumstances.

Tax rebate claims up to £2,500:

If your tax rebate claim is worth up to £2,500 you have a few options for submitting your claim:

1. HMRC online expenses claims form: Log into or set up a government gateway account to claim your tax rebate online via .GOV.
2. P87 by post: Complete a P87 form online by downloading it, then print it, and send it to the address provided at the end of the form.
3. By phoning HMRC: If you have successfully claimed a tax rebate for employment expenses before you can call 0300 200 3300.
4. Self assessment tax return: If you are self employed or need to complete a self assessment tax return for another reason, you can include your employment expenses on the return in the employment section.

A P87 gives you the ability to enter a claim for more than one tax year (up to a maximum of four) so if you are making a claim for multiple years you can keep it on the same form.

Tax rebate claims over £2,500:

If your tax rebate claim exceeds £2,500 you need to complete a self assessment tax return.

For those who already complete a tax return for reasons other than a tax rebate claim all you need to do is include your expenses in the relevant boxes of your tax returns employment section.

If you don’t already complete a tax return you must register with HMRC and obtain a unique taxpayer reference (UTR) number.

The registration process can take up to 10 days and once completed you will receive a UTR confirmation letter from HMRC.

When you receive your UTR number you should be good to submit your tax return online to HMRC.

Keep your HMRC login details and UTR number safe as you will need them to file your self assessment tax return online.

Documentation requirements

To support your tax relief claim, you should maintain:

For professional fees and subscriptions

• Receipts or bank statements showing payment.
• Membership certificates.
• Annual statements from professional bodies.

For travel expenses

Detailed log of journeys including:

• Date of travel.
• Starting point and destination.
• Purpose of journey.
• Distance traveled (for mileage claims).
• Receipts for public transport, parking and tolls.

For medical equipment and CPD

• Itemised receipts showing purchases.
• Course registration confirmations.
• Evidence that purchases are necessary for your current role.

Value of tax relief

The value of your tax relief depends on your tax rate:

• Basic rate taxpayers (20%) receive £20 relief for every £100 claimed.
• Higher rate taxpayers (40%) receive £40 relief for every £100 claimed.
• Additional rate taxpayers (45%) receive £45 relief for every £100 claimed.

For example, a higher-rate taxpaying doctor claiming their GMC fee (£425) would receive tax relief worth around £170.

Receiving your Doctor’s Tax Rebate

If your claim was for past tax years you should receive a tax rebate directly into your bank account or via a cheque (your choice).

Once your tax rebate claim is approved by HMRC both you (usually via your personal tax account) and your employer will receive a notification that your tax code has changed.

The new tax code will include your approved work expenses which will automatically give you tax relief during the tax year.

If something changes like you stop paying for a previously approved expense you should tell HMRC so they can adjust your code accordingly.

Special Considerations for Doctors

Hospital Doctors

• If you work across multiple NHS sites, ensure you distinguish between regular workplace (commuting not claimable) and temporary workplaces.
• Keep detailed records of on-call travel if not reimbursed by your Trust.

GP’s

• Partners in GP practices should claim expenses through their partnership tax return.
• Salaried GPs can claim through PAYE for expenses not reimbursed by the practice.

Locums and Freelance Doctors

• May need to register as self-employed and complete self assessment tax return.
• Can sometimes claim a wider range of business expenses including home office costs.

Important Deadlines and Considerations

• Claims can be made for the current tax year and up to four previous tax years.
• The tax year runs from April 6 to April 5.
• For backdated claims, you must submit within four years from the end of the relevant tax year.
• For claims exceeding £2,500 in a single tax year, you must complete a self assessment tax return.
• Different rules apply depending on your employment status:

– NHS-employed doctors claim through PAYE.

– Locum doctors usually need to complete a self assessment tax return.

– Doctors with mixed income sources need to consider each separately.

Doctor accountancy services

Navigating the complexities of tax rebates can be challenging especially for busy professionals like doctors.

It’s a good idea to seek professional advice if you are unsure of what expenses qualify for tax relief in particular costs like training courses, travel and subsistence.

Employing some expertise can help you avoid potential pitfalls and maximise your tax claims so you can make the most of your tax benefits as a medical professional.