If you’re a healthcare professional, you need to know about tax-deductible expenses for doctors in the UK.
Many doctors pay for work expenses out of pocket. Claiming these costs against your taxes can help you retain more of your hard-earned wages, but there are strict rules around what counts as an allowable expense.
Here’s how to make the most of your tax-deductible expenses.
These are the tax-deductible expenses for doctors in the UK
Let’s take a look at some of the most common expenses doctors can claim against their taxes.
Professional memberships and subscription fees
If you’re required to pay for certain professional fees and subscriptions as part of your job, you may be entitled to a tax rebate.
You can find a list of approved organisations and societies on the HMRC website. These include professional bodies such as the British Medical Association, the General Medical Council and the Royal College.
Most fees from these organisations are tax-deductible.
Essential clothing and equipment
Doctors who use their own wages to pay for medical equipment or clothing can also claim tax relief — so long as the items are essential for their work.
This can include:
- specialist footwear
- operating glasses
Your accountant can help you if you’re unsure if the items you’ve purchased count as an allowable expense.
While you can’t claim for any costs during your usual commute, you may be able to get tax relief for other travel expenses.
This could include train fares, bus tickets and mileage costs you incur while travelling to a temporary location. You may also be able to claim other necessary expenses of travelling such as:
- parking charges
- meals while travelling
- business phone calls
To make the most of your expenses, you should hold onto all your receipts and keep detailed records of how many miles you’ve driven for work purposes.
However, this is less straightforward if you work across more than one hospital or location, so we’d recommend speaking to a professional to ensure you claim the right amount.
In some cases, your employer may reimburse you for less than the statutory mileage rates and allowances. You’re entitled to claim the difference if this happens.
Training and exams
The rules for claiming the costs of training and exams can be a little complicated. HMRC does class some doctors’ training courses and exams as allowable expenses — but only if they are an intrinsic part of your employment.
If a course or exam is deemed eligible for tax relief, you’ll be able to claim for a wide range of associated costs such as travel or course fees.
However, any courses you choose to attend or qualifications you pursue for your own professional development may not qualify.
How to claim your tax rebate
You’ll need to claim your tax rebate in different ways depending on your circumstances.
If you want to claim income tax relief worth up to £2,500, you can complete a P87 form online or via post.
For any amount over £2,500, you’ll need to submit a self-assessment tax return. This means registering with HMRC to inform them you want to do so.
Signing up for self-assessment and filing annual returns can be complicated and time-consuming, particularly if you need to make a lot of claims.
As experienced accountants for doctors, we can calculate and file your returns on your behalf. We’re tax experts, so we know how to get the most out of your expenses while keeping you compliant with your obligations.
Do you pay for work-related expenses out of pocket? Get in touch with us to find out more about tax-deductible expenses for doctors in the UK.