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.
Claiming all relevant expenses is key to reducing your tax
It may sound obvious but claiming all relevant business expenses against your business income is one of the most efficient ways to ensure you are paying the least tax possible.
This applies if you are self-employed and pay income tax on your profits, or if you trade as a limited company and pay corporation tax.
Most business owners will be conscious of claiming business expenses, however, without a proficient system some may slip through the net.
This is why these days it is effective to have a cloud-based software package that helps you keep track and can be accessed when you are aware from your desk too.
April is a great time of year to consider what you could be doing better this coming tax year.
Working with a specialist accountant that knows your industry will also help to keep your tax bill to a minimum, as they know all the legitimate tax breaks for you to take advantage of.
What expenses can you claim?
As a dental or medical professional, here are some of the expenses you are likely to be able to claim against your business profits:
- Travel expenses, for work-related trips. To and from work is not allowable.
- Motor expenses, for work-related trips. To and from work is not allowable.
- Seminars and conferences + related costs, such as travel, subsistence and accommodation
- Subscriptions, to medical journals and professional organisations
- Membership, to the BDA, GDC, BMA etc
- Use of home office, a specific calculation is required for this
- Consumables, used in your practice
- Staff costs, if you employ people
- Laptops and computer equipment
- Stationary, printing and postage
- Advertising and marketing costs
- Rent or mortgage interest, rates, light & heat, if you own a practice
- Books and journals, for your professional use
- Uniforms, for professional use
- Repairs & maintenance, on certain items
- Tools & specialist equipment
This is not a definitive list and tax is a complex subject with many rules. What applies for one person, or business, doesn’t always apply to all.
It is always advisable to speak with your accountant about your specific situation.
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