Allowable Expenses NHS Doctors Medical Accountants
- January 2021
- 3 minutes
Allowable expenses for NHS Doctors/professionals:
If you work in the medical industry or for the NHS then it is worth understanding the HMRC rules around what you can and can’t claim against your taxes.
What are Tax Deductible Expenses?
If you are employed by the NHS and pay for work expenses that are not reimbursed to you, then you may be able to claim a tax rebate. HMRC sets out strict rules about what you can and cannot claim against your taxes, as well as how you work out the amounts. Here are some of the common tax-deductible expenses for NHS Doctors:
British Medical Association (BMA)
As an NHS doctor, you are able to claim tax relief for certain professional memberships and governing body subscriptions. HMRC has a list of professional memberships that it considers tax-deductible. It includes memberships to bodies such as GMC AND BMA.
Doctors Medical Clothing And Equipment
You can claim tax relief for any work expenses that you pay for personally but use it in your job. For example, if you have paid for any equipment or medical clothing, they should be tax-deductible providing they are required for your job.
Typical examples include:
- Scrubs (including the cost for laundry);
- Specialist Footwear;
- Operating glasses
Travel and Subsistence
Although you cannot claim travel between your home and place of work, there are some circumstances where you can get a tax rebate for travel. If you are travel to a temporary location, then you can claim the cost of that travel as well as subsistence. Subsistence means a small meal while you are out and about.
If you are a doctor or consultant who works across one or more hospital, then is advisable to seek professional advice before claiming travel and subsistence costs.
If you use your personal vehicle for work then you can claim a set amount per mile against your taxes. The currently approved mileage rates for cars are 45p for the first 10,000 miles and 25p thereafter. If the NHS reimburses you for your mileage, then no claim can be made. If they reimburse you for less than the statutory amounts above, you can claim for the difference.
Training Courses And Books
Claiming tax relief on training courses and books is a very grey area. So if you are in doubt then seek professional advice before making a claim because they have been the subject of much dispute between HMRC and doctors over the years.
In general, HMRC allows you to claim tax relief for training courses and books where they are an intrinsic part of the employment and one of the duties of the employment. In these cases, the costs of travel to the events, course fees, and other associated costs met by the employee are deductible. Where you choose to attend courses costs by your own choice or to maintain your CPD, then you cannot claim the costs of training or incidental subsistence.
Training Courses For New Qualifications
If you choose to start studying towards a new qualification or skill, then these costs are NOT deductible.
How To Claim Your NHS Doctor’s TAX Rebate
You must make sure you keep all your receipts for any expenses you want to include in your claim for your tax debate.
There are special rules for certain expenses where you don’t get a receipt or they are more subjective. These are:
How you make your claim will depend on the amount and your circumstances.
Tax Rebate Claims Up To £2,500
- By post: Complete a P87 form online, then print and post the form to the addresses at the end of the form
- Go online: Log into or set up a government gateway account to claim your tax rebate online
- By Phone: if you have claimed a tax rebate successfully before, then phone 0300 200 3300 make sure you have your NI number ready;
- On a self-assessment tax return, if you are self-employed or complete one for another reason.
Tax Rebate Claims Over £2,500
If your claim is for over £2,500 then you need to complete a self-assessment tax return. To do this you will need to register with HMRC to let them know that you want to complete a self-assessment tax return. Our experienced tax accountants can help you to get a tax refund from HMRC.
Then HMRC registration process can take up to 10 days and once it is completed you will receive a letter from HMRC with your UTR number. Keep your HMRC login details and UTR number safe because you will need them to file your self-assessment tax return.
How Will You Receive Your NHS Doctors Tax rebate
Once approved by HMRC, both you and your employer will receive a letter from HMRC notifying you of a change to your tax code. Your employer then will change your tax code and you will receive your rebate through your payslip.
How Many Years Can You Claim?
If this is the first time you have claimed a tax rebate, then you should be aware that HMRC allows you to go back 4 years. So you may be able to make a backdated claim.
Appoint TaxQube to process your claims
Being a regulated firm of chartered accountants, we are able to help you in dealing with your tax affairs as well as submitting any pending tax rebate claims on your behalf. We look after a large number of professionals from the medical industry.
Unlike other firms, we do not charge anything from your tax rebates which could be in thousands, you keep 100% of your tax claims. We help you maximise your claims as we have seen cases where people miss out by doing it themselves or using a non-tax specialist.
We only charge a monthly retainer fee which gives you access to an accredited accountant to help you manage your taxes and finances. Contact us for a free of charge consultation.