Claiming for Business Expenses

Knowing when to claim for business expenses will reduce your tax bill

GPs can claim business expenses which will MATERIALLY reduce their tax bills. Being self employed, GPs are able to claim business expenses against their profits.

Properly advised, a business expense of £1,000 could reduce your year-end tax payments by up to £630. Because of this, HMRC scrutinise claims for business expenses in detail and GPs are regularly the subject of HMRC tax investigations.

How we can help

We are CHARTERED TAX ADVISORS, expert in ensuring our GP clients claim the maximum business expenses and pay the minimum tax. We always act within the guidelines and the spirit of the law laid down by HMRC.

What expenses are tax deductible?

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 the practice?

This is the most popular question we are asked by our GP 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 practice, HMRC will not object.

Depending upon your individual circumstances this could save a significant amount of tax.

Can I claim 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/

What about 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%.

You can find our more detail on our Motor Expenses page

If I work from home can I claim for that?

If you carry out work related to your practice 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.

Some GPs 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.

What else can I claim for?

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

How Nichols Medical Accounting can help

We can advise clients on:

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