5 Key Reasons Doctors and Surgeons Need Accountants and Tax Agents
Doctors need accountants to help them negotiate the specific and complex financial requirements associated with the medical sector. It is therefore essential that any accountant who is employed must have built up a substantial experience of working with medical professionals. Whether they are GPs, hospital doctors or locums, medical practitioners should benefit from the accounting, practice management, tax, and pension consultancy that only a suitably qualified accountant can rightly provide.
As numerous developments take place within the medical profession, accountants with specialist knowledge will be able to advise doctors on matters that will affect them directly, such as changes in government legislation and acute and primary care trust policy decisions.
Let’s face it. The tax system is very complex, full of regulation and filing deadlines. If you are not well versed in this area and keeping up to date of all the legislative changes then you definitely need an accountant. Furthermore, the taxman has become increasingly aggressive in recent years with special task forces set up to target specific sectors, for example, the health and well being tax plan.
Financial planning is another service that most accountants will provide, enabling GPs to remain one step ahead financially without sacrificing hours of their time that could be better spent with patients.
Do you want to better structure your affairs for tax purposes?
Not sure what your tax code is or should be?
Tax relief on your professional subscription and indemnity insurance;
Do you own a second home that you rent out?
If your answer is yes, you definitely need a tax agent for medical practitioners. If you have income from a private source, then you should operate through a limited company in order to be tax efficient. The factors to consider under this circumstance are a bit much hence book an appointment with a professional advisor to help you in tax savings.
Here is another sign that you need help. If you are on PAYE income are you aware if your tax code is correct? It is your responsibility to check this and you will be expected to pay the tax if it is incorrect.
This one may surprise you but it is also applicable to previous years. Depending on the terms of your employment contract, you could also claim tax relief on the costs you incurred when training.
If you are one of those doctors who own a house that is rented out, then you should be aware that all rental incomes have to be declared and are tax deductible. You will need help in calculating such tax amounts and you probably might not be aware of some costs you can offset to reduce your deductible income. Tax may be due when you sell the property however, there are options to explore in terms of potential reliefs available on disposal.