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TAX TIP TUESDAY: Claiming tax relief on expenses for your employment

It’s Tuesday! Let’s talk Tax. Read this week’s short tax snippet for Doctors & Dentists, to help you save money and get more organised with your tax affairs. It’s just to give you a flavour – take 5 minutes to have a read.

This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice. 

Are you employed? Did you know you can claim tax relief on certain expenses you incur in your employment?

As a doctor or dentist, there are a number of costs that you incur to be able to maintain your reputation as a professional.

The taxman recognises this and in the same way that a self-employed doctor or dentist can claim back tax relief, so can you as an employee, for certain costs that is.

Tax relief can (generally) be claimed on:

  • Professional subscriptions and memberships
    • Such as, BMO, MDO, GMC, BDA, GDC
  • Travel and subsistence
    • When making trips that are wholly and exclusively for the purposes of work
    • Regular commuting isn’t allowable, so this includes home to work, however travel between practices or hospitals is allowable
  • Mileage
    • Mileage is allowed at 45p for the first 10,000 miles and 25p thereafter
    • This is for work related trips only and a mileage claim form is required listing all journeys
  • Education and training costs
    • Courses and costs associated with attending are generally tax deductible
    • Training is not allowed when it is to acquire a new skill, for example you are a doctor and decide to do a property development course
  • Uniforms, where they are used wholly and exclusively for work purposes
    • This does not include regular work clothes, but gowns and scrubs used just in the workplace are tax deducible if you are required to pay for them yourself
    • If you are expected to launder your own uniform then this is tax deductible
  • Equipment, where it is wholly and exclusively for work purposes
    • This may include specialist medical or dental equipment you need to use in your work

Generally speaking, the rule is that if you incur a cost that is 100 percent for work purposes then you can claim tax relief.

Of course, the rules can easily be misinterpreted, which is why it is beneficial to seek the help of a specialist dental and medical accountant, that can ensure your claim isn’t rejected, but also ensure you claim the maximum possible.

How to claim your tax relief

There are two ways to claim back tax relief on expenses in employment.

  1. Compete a Form P87 – “Tax Relief for Expenses in Employment” – your claim will be processed and if accepted then you should receive a refund of tax into your nominated bank account
  2. Compete a Self-Assessment Tax Return. If you already complete one then your employment expenses can be included and everything wrapped up together. If your expenses claim is over £2,500 then you will need to complete a tax return, rather than the Form P87.

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