Business Guide for Medical
Members of the medical profession have very specific accounting and taxation requirements. This guide outlines some of the key issues facing the profession and how we can help, but please contact a member of the Tuchbands team for specialist advice that is tailored to your unique circumstances.
As specialists in accounting for medical professionals, we understand the pressures faced by the sector and we have the experience and expertise to meet your needs.
Accounting and taxation
Accounting and taxation can be a notoriously complex area for the medical professional. A majority of medical practitioners has at least two sources of income which must be accounted for, which often includes private and hospital PAYE work.
Further issues can arise where an individual is assigned the wrong tax code, which is another common problem encountered by medical professionals, partly as a result of the nature of their working lives, coupled with the impact of personal expenses and additional sources of employment income.
We have an in-depth understanding of these issues, and we can help by managing your accounts and completing your tax returns on your behalf, while ensuring that you are paying the right amount of tax.
Personal expenses is another area which can be associated with complications, and the rules differ according to an individual’s employment status.
Self-employed medical practitioners can set their business expenses against their trading profit, thus reducing the overall tax bill. Where an expense is incurred for a mixture of business and personal use, the proportion of the expense which is trade-related is allowable.
As a result of these mixed forms of income, a common problem faced by medical professionals is the overpayment of national insurance contributions. We can help to monitor your tax payments and ensure that any overpayments are refunded by HM Revenue & Customs.
However, salaried doctors face stricter regulations. Expenses must be incurred solely in the performance of employment-related duties, and motoring expenses (which do not include commuting costs) must be claimed using HM Revenue & Customs’ fixed rate of remuneration.
We can help to ensure that you are claiming all of the allowable expenses appropriate to your circumstances, thus keeping your tax bill to a minimum, while also making sure that you comply with the statutory regulations.
Choosing the right trading structure
The legal structure of your business can have a significant impact on your tax liability. We can advise on the most tax-efficient legal structure for your practice, whether this is a sole trader, partnership, limited liability partnership or limited company.
If you have a partnership it is important to ensure that you have in place a robust partnership agreement. As well as protecting your financial interests, a partnership agreement will help to reduce the risk of disputes and will set out clear procedures for the appointment or retirement of partners. We can also help to ensure that any partnership agreement takes into account the necessary tax issues.
Please contact us for further advice and information.
Although pension planning may not be at the top of your agenda, it is nevertheless important to have in place a solid retirement planning strategy.
Pension planning for medical professionals can be particularly complex. We can advise on all aspects of your pension planning, from the NHS superannuation
We will work with you to establish your needs and help to manage your retirement planning.
How our services can help you
Our experience and understanding of the unique requirements of the medical profession mean that we are ideally placed to assist you. Some of the key areas where we can help include:
- Preparation of annual accounts
- Book-keeping services
- Management accounts
- Budgets and cashflow forecasting
- Setting up a new practice
- Managing and developing your practice
- Considering incorporation
- Partnership agreements
- National insurance contributions
- Tax planning, including inheritance tax and capital gains tax
- Claiming expenses
- VAT planning
- Dealing with NHS reimbursements
- Claiming the relevant benefits and allowances
- Employment related issues, including payroll
- Personal financial planning
- Retirement and pension planning
As well as offering you peace of mind that your tax and financial affairs are in order, we will work to help minimise your tax liability and maximise your personal wealth, allowing you to concentrate on professional matters.
Seeking specialist advice will help to ensure that you have in place the proper systems for managing your business and personal finances.
Find out more about our fees