Tax Codes for Hospital Doctors
An often overlooked but vital step
The amount of tax deducted from a hospital doctor’s salary is based on their tax code. If the tax code operated is wrong the amount of tax deducted by the employer will be wrong.
This can lead to the hospital doctor overpaying or under paying tax.
Why are tax codes so often wrong?
Hospital doctor’s tax codes are often wrong for two main reasons:
- Hospital doctors move jobs much more often than other people. This makes it difficult for hospital payroll departments to operate the right tax code.
- Tax codes often don’t take account of the hospital doctor’s personal expenses, non medical income or perhaps the fact that the doctor has more than one source of employment.
Does it matter if the code is wrong?
Having the wrong code leads to you either paying too much tax, or paying too little. Both of these are a bad idea because if you pay too little then, in the end, HMRC will coming knocking on your door.
Pay too much tax and you will have to go through the process of claiming a refund, but also risk running out of time because you can only go back over the last 4 years.
How can we help?
Whatever the reason for the incorrect code we are able to check the doctor’s tax code at any time during the tax year. We can talk directly to the revenue to ensure that the correct tax code is being operated. This will ensure that the right amount of tax is paid and no unexpected tax bills arise at the end of the tax year.