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Specialist advice for Salaried GPs

Whether you are working in the NHS, privately or a combination of the two, we can give you the correct tax and accounting advice to guide you through the various rules, restrictions and avoid the common mistakes.
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As a Salaried GP, should I be a Limited Company?

Making the right choice really matters

It is important to know which legal structure is most appropriate for your private income.

There are four structures to choose from:

  1. Sole trader.
  2. Partnership.
  3. Limited liability partnership, and
  4. Limited company.

There are potentially large tax savings

By selecting the right legal structure for your private income you could:

  • Divide your income with a spouse or civil partner.
  • Reduce tax rates to nil, 20% or 40% rather than 45% or 60%.
  • Reduce National Insurance Contributions altogether.
  • Shelter income in a limited company where corporate tax rates are currently 19%.
  • Help reduce the tax charge on the growth of your NHS pension.

But, a limited company is not always the best choice for all doctors. The legal structure which is right for you depends upon your financial and personal circumstances.

How can we help?

We have considerable expertise and experience in this area. We have advised many doctors how to substantially reduce their tax bills by choosing the right structure.

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Contact us for specialist medical accountancy services for Salaried GPs

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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NHS PENSION REVIEW

Are you in danger of being hit with a huge tax bill on your pension growth? Our NHS Pension Review Service can provide an advance warning of impending pension issues.

Learn more →

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TAX ENQUIRY PROTECTION

HMRC have increasingly got GPs in their sights and many Practices have been subject to lengthy tax investigations. Make sure you’re covered with our annual insurance scheme.

Learn more →

FREE

EXPERT CONSULTATION

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.

Contact us today

Meet our team

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.

Meet our team

HOW WE CAN HELP

A specialist healthcare team to advise you
Call free for support at any time
Keep you up to date with the latest changes
No fuss, smooth process to change to us
Members of AISMA - Association of Independent Specialist Medical Accountants

What our clients say…

Dr C DeSouza, Salaried GP

I am a GP who works both in salaried and sessional roles. I have been with Nichols & Co for nearly three years. They have helped with my tax returns and can help with the range of different forms required in GP work. Danny and Shadmir have been accurate and efficient in their advice and guidance throughout. They have also been helpful and responsive when I have needed advice on the purchase of a car and also when looking to prove my income in order to get a mortgage. The system for providing income details and expenses is very easy to use and the summary they provide of how and when to pay your tax could not be clearer. I would recommend Nichols & Co to any colleague looking for an accountant with a good knowledge of GP work. 

Dr PS, Salaried GP

I have employed the services of Nichols and Co accountants since 2016 and I have found their services to be second-to-none.

Mr Shadmir Baig has been my accountant since 2016 and his expertise and timely assessments have really helped in tackling tax matters and my anxieties around them. The advice I have received is always accurate, simple to follow and the response time is simply excellent!

I have always been able to access services rapidly. The firm has an extremely organised reminder system so that deadlines are not breached and for someone juggling a busy job and parenthood this is a huge help. The firm exceeds itself when it comes to friendly and accurate advice. The staff are always extremely helpful.

I am absolutely thrilled with their services and would not hesitate at all to recommend this firm to friends and colleagues.

Dr Helen Butler, Salaried GP

As a newly-qualified, portfolio GP with lots of different workstreams, the prospect of a self-assessment tax return was rather overwhelming! Debra immediately put me at ease at our initial meeting. 5 years on, Debra and the team continue to make the whole process so simple and are always friendly and approachable. I have recommended Debra to many colleagues over the years. A fantastic service. Thanks Debra!

Dr Emma Agyekum, Salaried GP

I am a salaried GP who owns a rental property and locums and Nichols have looked after all aspects of my taxation for several years. They have provided me with valuable advice for which I am extremely grateful and respond to queries competently, thoroughly and efficiently. They have taken the time to educate me on various financial matters which makes filing my self assessment tax return almost effortless. I am always impressed by how speedily they respond to my emails and submit tax returns which enables me to better plan for the financial year ahead. I would confidently recommend their professional, efficient, friendly and reliable service to anyone.

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WHO WE HELP

CONTACT US

Nichols & Co
Unit 7, Mulberry Place
Pinnell Road
Eltham
London SE9 6AR

020 8850 3300
admin@nichols.uk.net

© 2018 Needyesterday | All rights reserved

HOW WE CAN HELP

A specialist healthcare team to advise you
Call free for support at any time
Keep you up to date with the latest changes
No fuss, smooth process to change to us
Members of AISMA - Association of Independent Specialist Medical Accountants

Meet our team

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.

Meet our team

FREE

EXPERT CONSULTATION

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.

Contact us today

Nichols Medical Accounting

What our clients say...

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.

Tracy Ford, Practice Manager

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Name Surname, Senior Recruitment Consultant

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Name Surname, Senior Recruitment Consultant

Self Employed

As a Self Employed locum GP both Method 1 and Method 2 are available to claim motor expenses.

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.

For a sole trader 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:
http://comcar.co.uk/advanced/selector/profiles/FirstYearAllowance?clk=1

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.

Salaried

You will almost always make a claim using Method 1, the mileage claim.

Limited Company

You will almost always claim using Method 1, the mileage claim.

Umbrella Company

The umbrella company will dictate what expenses you can claim. You will nearly always use Method 1, the mileage claim.

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.

Dr C DeSouza, Salaried GP

I am a GP who works both in salaried and sessional roles. I have been with Nichols & Co for nearly three years. They have helped with my tax returns and can help with the range of different forms required in GP work. Danny and Shadmir have been accurate and efficient in their advice and guidance throughout. They have also been helpful and responsive when I have needed advice on the purchase of a car and also when looking to prove my income in order to get a mortgage. The system for providing income details and expenses is very easy to use and the summary they provide of how and when to pay your tax could not be clearer. I would recommend Nichols & Co to any colleague looking for an accountant with a good knowledge of GP work. 

Dr PS, Salaried GP

I have employed the services of Nichols and Co accountants since 2016 and I have found their services to be second-to-none.

Mr Shadmir Baig has been my accountant since 2016 and his expertise and timely assessments have really helped in tackling tax matters and my anxieties around them. The advice I have received is always accurate, simple to follow and the response time is simply excellent!

I have always been able to access services rapidly. The firm has an extremely organised reminder system so that deadlines are not breached and for someone juggling a busy job and parenthood this is a huge help. The firm exceeds itself when it comes to friendly and accurate advice. The staff are always extremely helpful.

I am absolutely thrilled with their services and would not hesitate at all to recommend this firm to friends and colleagues.

Dr Helen Butler, Salaried GP

As a newly-qualified, portfolio GP with lots of different workstreams, the prospect of a self-assessment tax return was rather overwhelming! Debra immediately put me at ease at our initial meeting. 5 years on, Debra and the team continue to make the whole process so simple and are always friendly and approachable. I have recommended Debra to many colleagues over the years. A fantastic service. Thanks Debra!

Dr Emma Agyekum, Salaried GP

I am a salaried GP who owns a rental property and locums and Nichols have looked after all aspects of my taxation for several years. They have provided me with valuable advice for which I am extremely grateful and respond to queries competently, thoroughly and efficiently. They have taken the time to educate me on various financial matters which makes filing my self assessment tax return almost effortless. I am always impressed by how speedily they respond to my emails and submit tax returns which enables me to better plan for the financial year ahead. I would confidently recommend their professional, efficient, friendly and reliable service to anyone.

Steve Nichols

Steve Nichols

Chartered Accountant & Chartered Tax Advisor

First Last

Position

Email:

[Biography here]

First Last

Position

Email:

[Biography here]

Shadmir Baig

Shadmir Baig

Chartered Certified Accountant