As a medic, during an average working day, you often incur expenses to enable you to carry out your role as a medical professional. The good news is that you can claim tax relief on some of those costs.
Claiming back expenses may seem time-consuming and too much effort, but it’s important to remember that many small costs can add up to quite a significant sum of money. Plus, it’s great to find out you can claim back the cost of something, especially when you find it relates to the fact you are just doing your job!
What expenses can I claim for?
Fees and subscriptions
Professional Fees and Subscriptions are not restricted to the BMA, GMC & MPS. There is a long list of professional bodies approved for tax relief. Maybe you are already a member of one of these, or you are putting off becoming a member due to costs, if this is the case, it’s worth clicking the link below.
Your commute to and from your workplace is excluded. However, you can claim mileage if you need to travel to that super important training or professional development event in another city, which is a bonus given the rising cost of living.
Equipment essential for your job
Perhaps a stethoscope is essential for your particular role, or a pair of those on-trend rubber clogs that appear a universal must for medical professionals?!
Still, studying? What about exams that you’ve already paid
When it comes to exams before 2010, HMRC saw these as career progression. Therefore, you were unable to claim exams as expenses. Due to a high court judgement, you can now claim the cost of exams, which is compulsory to your training contract.
How do you claim your expenses?
The best place to see how to claim expenses is on the HMRC website. If the total costs of these expenses are under £2,500 in a tax year, there is a simple form to complete for each tax year you want to claim in. Any amounts over £2,500 you will need to claim via your self-assessment.
Timeframes for claiming expenses
HMRC will allow you to claim expenses that have arisen in the previous four years from the current tax year we are in1: You may need to scroll left and right if you’re viewing the table below on a small screen.
|Tax Year||Tax Year Ended On||You Must Claim By|
|2018-19||5 April 2019||5 April 2023|
|2019-20||5 April 2020||5 April 2024|
|2020-21||5 April 2021||5 April 2025|
|2021-22||5 April 2022||5 April 2026|
|2022-23||5 April 2023||5 April 2027|
A cautionary note!
These days “passive income” is all the rage with extra earnings on the “side”, for example, rental income on a Buy to Let property or maybe Youtube/Instagram fees for being such an amazing influencer – in instances such as these, or similar you need to declare it.
Should I use an accountant?
Filling out any forms to send to the HMRC can be complex, and it is advisable to engage the services of an accountant or tax adviser to help with what you can and can’t claim.
What can an independent financial adviser do?
Accountants can help with submitting returns and associated work. However, you should expect an IFA to help plan for your future by discussing your personal tax situation. They will certainly take into account your earnings, the source of those, any allowances and possibly those of your spouse/partner and children too. It seems not a year goes by without the Chancellor tinkering with taxation in some way, or another to either close off opportunities or indeed open up new ones so your adviser can help!
You can contact Vincenzo, also known as Vinny, by emailing Vincenzo@legalandmedical.co.uk to discuss your current financial situation and how you can plan accordingly for a tax-efficient future.
Tax is dependent on your own circumstances and personal situation, and is subject to changes based on UK legislation and taxation regime. This article is based on our understanding of current legislation.
Will you be submitting your tax-deductible expenses this year? Let us know by adding a comment below.
This article was first published in August 2016. It has been revamped and updated for accuracy and comprehensiveness in March 2023. This article is not specific advice. We would always suggest that you get specialist advice in this area.
Legal & Medical Investments Ltd is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate tax advice. The tax reliefs referred to are those currently applying in the United Kingdom to UK Tax Residents. These tax reliefs are liable to change. The value of any tax relief available will depend upon the individual circumstances of the taxpayer.