Medical profession and tax

Medical professionals often work long and stressful hours in the pursuit in keeping the rest of us fit and healthy. 

After an intensive stint at medical school, followed by placements and residencies that call for constant learning and adaptation, it is understandable that medical professionals don’t always have time to think about taxes. 

We help many medical professionals focus on the important work they do by taking care of their personal and professional finances, but here is a few introductory points to think about.

Deductible expenses

Tax deductible expenses are costs that are incurred as part of the performance of your professional duties, such as travel and equipment. 

There are a number of kinds of expenses that can be claimed by medical professionals, but some of the most popular ones are: 

professional fees and subscription for professional bodies, associations and societies 

business travel and fuel costs (your daily commute to your regular place of work is not included) 

tools and specialist equipment such as stethoscopes and other technical equipment. 

As of yet, training courses and education costs cannot be claimed as tax-deductible. 

To claim your expenses, you will need to do different things depending on the amount that you are claiming. 

If the claim is under £1,000 you need to contact HMRC and give a summary along with your national insurance number. 

If the claim is under £2,500 you will need complete a P87 form. Any claims above £2,500 will need to be handled through self-assessment. 

Separate income streams   

It is not uncommon for medical professionals to have a number of different income streams, such as private practice earnings and an NHS salary. Anyone who has tried to account for a number of income streams will know that it can quickly become a complex tangle. 

One common issue is that people with 2 or more income streams often end up paying more national insurance and are unaware of the fact that they could be due a rebate. 

There is a limit on the amount of national insurance that is payable in each tax year which is based on a person’s annual earnings. Many medical professionals who are paying tax on both an NHS salary and other earnings, you may well be paying too much national insurance. 

What we can do 

This post might have given you a taste as to the potential complexities of the medical profession. As well as helping you with expenses and multiple income streams, we can help you with the following:

claiming NHS reimbursements 

partnership, income sharing and joint ownership arrangements 

advising self-employed doctors who also receive an NHS pension.  

We have an expert team that can take the hassle of your finances so you are free to focus on more important things. Contact us today if you would like to discuss what we can do for you. 


21 Lodge Lane
RM17 5RY

Tel: 01375 383888
Fax: 01375 391672