Tax for doctors working around Fulham
Fulham sits close to some of the busiest hospitals in London. Chelsea and Westminster Hospital is on Fulham Road, Charing Cross Hospital is on Fulham Palace Road, and the Royal Marsden and Royal Brompton are a short ride towards South Kensington. Many doctors who work there live in SW6, Putney or Hammersmith, and plenty also run a GP list, do sessional work or see private patients on the side.
That mix is exactly where tax gets complicated. Your PAYE salary may be correct, but private fees, locum sessions, medico legal work and pension growth all need to be reported properly. Our ACCA qualified accountants work with doctors at every stage, from foundation years to partnership and retirement.
GP partners
As a GP partner you are self employed. Your income comes from your share of the practice profits, not a salary, and you pay tax on that share through self assessment. The partnership itself also needs accounts and a partnership return each year.
Partners often have pension contributions taken from their drawings, along with seniority or other payments that need to be split correctly. The end of year certificate for the NHS Pension Scheme has to match the accounts. We prepare practice accounts, partnership returns and each partner's personal return, so the figures line up from start to finish. We can also help with partner changes, profit sharing and the tax effect of a partner joining or leaving.
Practices in Fulham, Hammersmith and Chelsea often have a mix of partners at different stages, some close to retirement and some newly joined. Getting the profit share and pension figures right for each partner avoids awkward corrections later.
What is included
- Self assessment returns for doctors
- GP practice accounts and partnership returns
- NHS pension annual allowance checks
- Scheme Pays elections and reporting
- Locum record keeping and pension forms
- Private practice accounts, sole trader or company
- Claims for professional fees and subscriptions
- VAT reviews for medico legal work
Salaried GPs, hospital doctors and locums
Salaried GPs and hospital doctors are taxed through PAYE, but many still need to file a return. Common reasons include private income, rental income, income over the level where the high income child benefit charge applies, or tax relief on professional costs that has not been given through your tax code.
Doctors can usually claim tax relief on GMC fees, medical defence cover and approved professional bodies such as the BMA or royal colleges. Many have never claimed and are owed money for earlier years. Locum GPs are usually self employed, keep their own records and submit locum forms to keep their NHS pension going. We help locums with record keeping, expenses, pension forms and their return each year.
- Professional fees and subscriptions
- Medical defence and indemnity cover
- Locum pension forms and contributions
- Backdated claims for earlier tax years
The NHS pension annual allowance
The annual allowance is the limit on how much your pension savings can grow in a year before you pay extra tax. For NHS members it is not just what you pay in. It is based on how much your pension promise has grown, which can jump after a promotion, a move to consultant grade or a change in hours. Very high earners may also have a reduced, or tapered, allowance.
We read your pension savings statement from NHS Pensions, check it against your income, and work out whether a charge is due. Unused allowance from the previous three years can often be carried forward to cover it. Where a charge does arise, we explain the choice between paying it yourself and using Scheme Pays, then report it on your return.
Private practice and other medical income
Private consultations, insurance work, expert witness reports and teaching all count as extra income. You can run this as a sole trader or through a limited company. A company may suit doctors with significant private income they do not need to draw straight away, but it brings more admin and does not suit every case.
VAT also needs a careful look. Medical care is generally exempt, but some work, such as certain medico legal reports, is not treated as medical care and can be subject to VAT. If that kind of work grows, it can count towards the £90,000 registration threshold. We look at what you actually do and give you a straight answer.
Planning ahead
Doctors often earn more in their forties and fifties than at any other time, which is when pension, child benefit and the loss of the personal allowance all start to bite. A short planning meeting before 5/4 can make a real difference to how you organise pension contributions, gifts to charity and private work. We help you think a year ahead, not just fill in last year's figures.
Who this suits
- GP partners in Fulham, Hammersmith and nearby
- Salaried GPs with private or rental income
- Hospital doctors at Chelsea and Westminster or Charing Cross
- Consultants with private practice income
- Self employed locum GPs
- Doctors in training who want their tax code checked
Common questions
Do salaried doctors need to fill in a tax return?
Not always. You usually need one if you have private income, rental income, or a high income child benefit charge to pay that is not collected through your tax code. If none of that applies, a claim for professional fees can often be made without a full return.
Can doctors claim tax back on GMC and BMA fees?
Yes. Fees paid to bodies on HMRC's approved list, such as the GMC and BMA, qualify for tax relief, and so does medical defence cover you pay yourself. You can usually claim for up to four previous tax years as well.
How do I know if I have an NHS pension annual allowance charge?
Start with your pension savings statement from NHS Pensions, which shows your pension growth for the year. That figure is compared with your annual allowance, including any carry forward. We do the full calculation and tell you whether anything is owed.
What is Scheme Pays?
Scheme Pays lets the NHS Pension Scheme pay an annual allowance charge for you. In return, your pension is reduced when you retire. It helps with cash flow, but it has a long term cost, so it is worth talking through first.
Should I set up a limited company for my private practice?
It depends on how much private income you earn and how much you need to draw. A company can help if you leave profits in the business, but it adds costs and paperwork. We compare both options using your own figures.
Are locum GPs self employed?
Most locum GPs are self employed and file a self assessment return. They also complete locum forms so their work counts towards the NHS Pension Scheme. We help with both.
Do medico legal reports have VAT on them?
Some do. Reports written mainly for legal purposes, rather than for a patient's care, are usually not exempt. If you do a lot of this work, we check whether you need to register for VAT.