As a medical professional, you’re probably already paying various professional fees. But did you know that these payments could also help you save on your taxes? Whether you’re a member of the General Medical Council (GMC), British Medical Association (BMA), or the Royal College of Physicians (RCP), make sure you’re getting tax relief on these expenses.
To make the most of the benefit, you can either incorporate these fees into your tax code to ensure tax relief at the source or claim them as an employment expense on your self-assessment tax return. If you’ve missed out on these claims in the past, don’t worry—we’re here to help! Get in touch with us, and we can assist you in claiming back the tax relief for the last four years.
Earn Flat Rate Trade Allowance
Do you wear a uniform for work and handle its laundering yourself? If so, you could be eligible for a flat rate trade allowance ranging from £60 to £185. This might not seem like much, but it could save you anywhere between £24 and £74 annually on your taxes—and let’s be honest, every little bit helps.
To find out exactly how much you can claim, just search for “NHS flat trade allowance” online and see which category applies to your job. If your job title isn’t listed, you can still claim the lower amount of £60.
Reduce Student Loan Repayments
Another often overlooked tax-saving strategy is reducing your adjusted net income to lower your student loan repayments. Even if you’re not affected by charges like child benefit, reducing your income can still lighten your student loan burden. This requires careful planning, as student loan deductions are irreversible once paid.
One effective way to lower your gross income is through a salary sacrifice. By contributing to your pension or increasing your monthly percentage, you can reduce your income at the source. Interested in taking advantage of this? Our team can provide the guidance you need to make sure everything is set up correctly.
Claim tax-deductible expenses
Self-employed doctors are allowed to deduct legitimate expenses before they pay tax. Here’s a quick reminder of the areas you can claim for, so you can make sure you don’t miss out:
- Medical indemnity
- Travel costs, including train fares, parking permits & tickets
- Stationary
- Medical equipment
- Consulting room fees
- Accountancy fees
Make your pension work harder for you
Make sure you’re claiming all your pensionable income with these tips below:
- Your pension fund’s contributions are allowable for income tax – so these assets can grow tax-free!
- If you have a private practice under a Limited Company, your company can pay pension contributions on your behalf, which are fully tax deductible.
If in any doubt about your pension, contact us and we’ll happily take you through your options.
Get Organised
Finally, we highly recommend that all medical professionals create an HMRC Government Gateway tax account. Whether you’re in the self-assessment bracket or not, this online account allows you to view your annual tax calculations, update your tax codes to reflect the correct amount of professional fees, and verify that your national insurance record is accurate for state pension entitlement.
Having easy access to all this information means you stay on top of your finances and not miss out on any entitlements.
If you’d like to discuss any of these tips further, get in touch today and we’ll be happy to help.
