Tax Codes

The amount of tax deducted from a doctors salary is based on their tax code.  If the tax code operated is wrong then the amount of tax deducted by the employer will be wrong.  If too much tax is deducted by the employer, the GP will receive a tax rebate.  However, if too little tax is deducted, the GP will receive a tax bill for the shortfall.  This will be the case even if it is the employer who is responsible for the under-deduction.

Why are Tax Codes so Often Wrong

Hospital doctors’ tax codes can be wrong for a multitude of reasons:-

  • They may move jobs more often than other people.
  • NHS Hospitals are often not expert in operating payrolls.
  • Tax codes often don’t take account of the doctors’ personal expenses or private income or perhaps the fact that the doctor has more than one source of employment.

These are just a few of the reasons why the wrong tax code may be operated.

How Can We Help

Whatever the reason for the incorrect code, we are able to check the code at any time during the year.  We can talk to the Revenue to ensure that the correct tax code is issued.  This will ensure that the correct amount of tax is paid and no unexpected tax bills will arise at the year end.