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 out of your evening to have a read.
Are you claiming the maximum tax relief?
As a professional it is likely that you will be paying a professional membership subscription, to the GDC or the GMC, which can add up to quite a sum each year.
In addition, other subscriptions to professional bodies are deductible where the objective of the membership is mainly professional. These could include the BMA and BDA, but there are many more.
Depending on if you are self-employed, or a director of your own limited company, will depend on the tax treatment.
Self-employed
If you are self-employed, then the tax treatment is straightforward. In your year-end accounts the professional subscriptions are simply deducted as a tax-deductible expense, which reduces the annual profit figure, in turn reducing your overall tax liability.
Limited Company / Employed
If your business is ran through a limited company, where you are the director, the same applies, in that you can deduct the costs of the professional subscription from the company profits, IF, and only if, the subscription is actually paid by the company.
Also take care that the subscription is on HMRC’s List 3, of allowable subscriptions, and you will not be subject to a Benefit-in-Kind tax charge.
Use a specialist accountant
A specialist accountant has the advantage that they are familiar with the cost that doctors and dentists incur so can ensure you are not missing out on any opportunities to save on tax.
We can connect you with an accountant that specialises in helping doctors and dentists to minimise tax and maximise profit.