Specialist advice for Consultants

Whether you are working privately or in the NHS or a combination of the two, you need to be sure that you are organising your affairs to minimise your taxes and ensure your pension is secure.

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Claiming expenses as a Consultant

Reducing you tax liability

Consultants with private income can claim business expenses which will materially reduce their tax bills.

Properly advised, a business expense of £1,000 could reduce your year-end tax payments by up to £630.

Of course because of this, HMRC scrutinise claims for business expenses in detail and consultants are regularly the subject of HMRC tax investigations, this is why you should have specialist accountancy and tax advice to make sure you are following the rules correctly.

Consultants with private practice income

Being self employed, you are able to claim business expenses against your profits. This will reduce your tax bill.

Tax deductible expenses

We have set out some of the types of expenditure that may be allowable. It should not be seen as an exhaustive list. What is allowable depends on the facts in each case.

Can I pay my spouse a salary or a pension contribution out of my private income?

This is the most popular question we are asked by our consultant clients! And the short answer Is YES. If you pay your spouse a salary or a pension contribution at a commercial rate for the work they do for your private practice, HMRC will not object.

Depending upon your individual circumstances this could save a significant amount of tax see more about this here.

Claiming for Professional subscriptions

The subscription costs we help our clients claim a deduction for on a regular basis are:
MDU, MPS, BMA, GMC.

An annual subscription to a body shown in the list approved by HMRC is allowable where either the subscription is paid by a self-employed individual or by an employee, and the activities of the body are directly relevant to the self-employment or employment.

Use this link to access the full list http://www.hmrc.gov.uk/list3/

Motor expenses

Motor expenses can be claimed on a car assuming it is used for business purposes. The expenses have to be apportioned so that only the percentage incurred ‘wholly and exclusively for the purposes of the trade are allowed. Fuel efficient cars now attract tax allowances of 100%.

Use of your home as your office

If you carry out work related to your private income from your home, you will be able to claim a tax deduction to cover the additional costs of working from home. There are several ways to claim. Some accountants use a fixed amount per week, while others calculate a claim using a percentage of the actual running costs of the home.

Many consultants think that if they make this claim there will be a capital gains tax implication when they sell their home. This will not be the case as long as no part of the house is used exclusively for business purposes.

Other expenses

Many other types of expenses can be claimed by consultants with private income. We provide our consultant clients with detailed checklists and advice to ensure that all allowable expenses are claimed.

If you are trading through your own Limited Company

Assuming IR35 does not apply to your limited company, the tax deductible expenses which can be claimed are similar to those listed above for self employed consultants.

If IR35 applies to your limited company, the tax deductible expenses are very limited. If the ‘off payroll’ working rules are applied to your limited company no expenses can be claimed as a tax deduction.

How we can help

We can advise clients on:

  • Which expenses are deductible for tax whatever your business structure?
  • How to make the relevant claims.
  • What percentage of a cost can be claimed as a business expense?

We are chartered tax advisors, expert in ensuring our consultant clients claim the maximum business expenses and pay the minimum tax.

We always act within the guidelines and the spirit of the guidelines laid down by HMRC.

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Contact us for specialist medical accountancy services for Consultants

If you’re looking to plan your finances for the future or trying to find an answer to a problem then get in touch today.

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NHS PENSION REVIEW

Are you in danger of being hit with a huge tax bill on your pension growth? Our NHS Pension Review Service can provide an advance warning of impending pension issues.

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TAX ENQUIRY PROTECTION

HMRC have increasingly got GPs in their sights and many Practices have been subject to lengthy tax investigations. Make sure you’re covered with our annual insurance scheme.

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EXPERT CONSULTATION

Talk to one of our Medical Accounting Team for free. We can discuss your circumstances and how we can help you achieve better financial management, reduce your tax bills or plan for the future with a tailored fixed price plan.

Meet our team

We have a panel of subject experts and a team of professional accountancy support staff to make sure your specific needs are met reliably and cost effectively.

HOW WE CAN HELP

A specialist healthcare team to advise you
Call free for support at any time
Keep you up to date with the latest changes
No fuss, smooth process to change to us
Members of AISMA - Association of Independent Specialist Medical Accountants

What our clients say…

Dr David Paige, Consultant Dermatologist, The Holly Private Hospital

The reason I was first attracted to Nichols was when I heard Mr Nichols explain the complexities of the Life-time allowance and the Annual allowance changes in simple terms. I have had no regrets using this firm as they are very trustworthy and honest.

They also sorted out my allocation of rental income to my partner correctly which I had been badly advised on before by a very large and well known accountancy firm.

They respond in a timely manner to queries and (politely) chase me up over submitting my tax return details. I would recommend them to anybody in the medical profession.

Dr Colm Irving, Consultant Anaesthetist

Nichols and Co have done two things for me which have changed my financial life. They advised me to incorporate my practice and introduced me to online accounting using XERO. Both these moves have saved me time, money and stress. If I do get stressed Danny Woodham is immediately available on the end of a phone or an email.

Dr Miguel Plaza, Consultant Paediatric Anaesthetist, Kings College Hospital

I have been with Nichols & Co since the beginning of my career and there is a reason for that. Not only they do their job very well, they simply care for you, because you become part of the Nichols family and this is what makes them unique. They will look after you so well, that you will never want to leave. If you want the best, you want Nichols & Co.

Dr Dimitri Amiras, Consultant

I first started using Nichols and Co in my first year of doing private consultancy work. I found them to be professional, responsive and knowledgeable. It can be quite stressful when you are faced with confusing tax and especially pension rules when you start as a consultant. However, I've always found them able to explain and guide me through the complicated process.

Dr Andrew Plumb – Consultant

I received a recommendation from a colleague for Nichols & Co over 5 years ago and have been with them ever since, initially with Debra and subsequently Danny being my accountant.

They have consistently been responsive, efficient and clear in all communications, whether via phone, email or using their secure online portals. All requests are dealt with rapidly and with a deep understanding of modern hospital medicine including private practice.

I’ve received excellent advice on all matters of taxation and expenses, practice structure, allowances and the NHS pension (including the taper and annual allowance charges). I would definitely and strongly recommend them.