Claiming Expenses as a Hospital Doctor
The tax rules governing personal expenses for salaried doctors are strict and are by no means as generous as the expense rules enjoyed by self employed consultants and GP principals.The rules state that an expense must be incurred ‘wholly, necessarily and exclusively’ in the performance of the duties of a doctors employment.
Normally this will mean that there are 4 areas to look at:
e.g. – MDU, MPS, BMA, GMS, RCGP
These costs are always allowed by the Inland Revenue. However, please note that in circumstances where a hospital pays or reimburses these costs on behalf of the doctor, then the doctor will receive no tax relief on the cost.
As an employee, hospital doctors must claim motor expenses using the fixed profit car scheme. This permits a claim of 45p per business mile for the first 10,000 miles then 25p for each additional mile. It is not necessary to keep receipts for expenditure, but you must be able to support the number of business miles claimed, so you should keep a record of journeys. Please note that regular commuting is not treated as business travel.
Any medical equipment purchased by the doctor will be deductible as an expense of their employment provided the expense is incurred ‘wholly, necessarily and exclusively’ in the performance of the duties of an employment. A doctor may consider that any medical equipment is purchased for this purpose, however, beware:-
The Inland Revenue might argue that ‘if a piece of equipment is necessary for an employment, then it will be purchased by the employer’.
Provided the fees are considered to be incurred ‘wholly, necessarily and exclusively’ in the performance of the duties of an employment, then the fees will be deductible for tax.
However, not everything will be covered, a fee which will allow a doctor to gain an additional qualification or which will allow the doctor to be able to work in a new specialist area may be considered to be ‘capital’ in nature by the Revenue and therefore not deductible for income tax.
Helping you claim the right amount
We can work with you to ensure that you are claiming for legitimate expenses and not missing out on a tax rebate when you are entitled to it.