Specialist advice for GP Medical Practices

Working within the NHS, resources and funding are always going to be critical to your general practice, but so is getting the correct financial and accounting advice to guide you through the myriad of conditions, rules and restrictions.

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Motor Expenses as a GP

Claiming for Motor Expenses as a Self Employed GP

There are two methods available for you to claim motor expenses:

  1. to claim a mileage rate of 45p a mile for your business miles, reducing to 25p per mile after 10,000 miles.
  2. to keep records of all your motor expenses for any vehicles that you use for your business and claim the business percentage of these costs. If you use this method you can also claim for something called Capital Allowances, which is effectively an allowance for the depreciation on the vehicle.

Note that the mileage from your home to surgery will be considered by the Revenue as private mileage and not business mileage.

If I chose method 2, how would this work?

So, as an example, if you used your car 50% for business and 50% for private use, you could claim a tax deduction on the costs as detailed below:

Example Total Annual Running Costs
Petrol: £2,600
Insurance: £1,000
Repairs: £500
Road tax: £120
Annual service: £800
RAC/AA: £75
Total: £5,095

Less 50% for private use: £2,547
Allowable expense £2,548

How do Capital Allowances work?

You can also claim capital allowances on the cost of the car. The rate of capital allowances you can claim is dependent upon the CO2 emission level of your vehicle. The amount you can claim can range from 100% to 6%. A 100% capital allowance claim accelerates the available tax relief.

To qualify for 100% first year capital allowances, there is an upper CO2 emissions limit of 50 g/km which was introduced from 6 April 2018 and will last until 2023. The car must be bought new.

There is a wide range of vehicles including many luxury vehicles which qualify for the 100% allowance. For a GP with a top rate of tax at 40% who would use the car with 50% private use the following tax savings would be made:

Example Costs
Based on: BMW i3 Electric 12 ah Auto.
Purchased: 2019/20 Tax Year
List price: £35,125
Capital allowances claim: £35,125, but restricted to 50% business use, therefore tax relief £17,562 at 40% tax plus 2% NIC.

Tax saving in year of purchase: £7,376 (42% x £17,562)
This means that, after tax, cost of the vehicle is an effective £27,749.

The following link shows the current 285 vehicles that qualify:

Which method is best?

If you are buying a car which you are using mainly for business and doing a large amount of business miles, then method 2 (the Capital Allowance Claim) usually gives a higher tax relief.

How can I choose?

In both Method 1 and Method 2 you need to know the level of your business mileage. We ask clients to keep mileage records to enable us to do calculations for both methods. Together, we can then determine which method is best for you and therefore help keep your tax to a minimum.


Contact us for specialist medical accountancy services for GP Medical Practices

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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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.

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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.


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What our clients say…

Tracy Ford, Practice Manager

We have been with Nichols & Co for over a year now. Very smooth transition with good communication at all times. We found them very professional and their knowledge of general practice is very reassuring. They make what can be complex situations easy to understand.

They have also introduced us to a Personally Administered Items claim review service, which has helped us not only making a retrospective claim for the missed income but also delivering improvement in our PAI income going forward.

I wouldn't hesitate to recommend them to anyone looking for an excellent, friendly, reliable accountancy service.

Dr William Jasper, GP Partner

We have received an excellent service since we moved to Nichols & Co. The transition has been the most hassle-free and transparent. They are always very helpful with any queries you might have and have a very good working knowledge of General Practice and are keenly aware of the challenges Practices face within the changing environment of the NHS.

We have been very impressed by the way Nichols & Co continue to deliver the range of services they provide from Accounts to Tax and NHS Pension advice.

At the year-end meetings, the accounts are presented in an understandable format without any unnecessary jargons. We have found Practice consultation and advice on Practice as well as personal tax matters from Nichols & Co specifically helpful.

We would not hesitate to recommend them to other GP Practices.

Drs R and N Nair

Nichols & Co have been our accountants for the last 6 years and we always feel that we are a valued client of theirs. They respond promptly to any queries you have either via email or telephone or if need be, in person. Each year Debra visits me at my practice and takes time to go through the accounts with me so that I really understand them, helping me make better decisions.

In 2017, we moved into new premises, and Nichols and Co were able to assist me with claiming back a large amount of tax on the refurbishment of our new premises.

Our practice has changed a great deal over the last few years and having the support of a good accountant has been a great help. I would recommend them without reservations.

GP Partner, London

Nichols and Co have provided high standard medical accountancy services to our GP practice for many years. 

They are experienced in their field and provide a dedicated partner who attends our annual financial partnership meeting. This meeting allows time for all involved to raise queries regarding issues such as tax and pension. Additionally, wider comparisons are made with local and national figures. Queries raised at other times are dealt with in a professional and time efficient manner.

I can recommend them.