Doctors and dentists ― self-employed expenses

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Doctors and dentists ― self-employed expenses

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
imgtext

Practice expenses

Most GPs have adopted the practice of making annual claims for income tax purposes in respect of amounts paid out privately in connection with their practice. Typical expenditure of this nature includes:

  1. medical subscriptions

  2. motor car and travelling expenses

  3. personal telephone charges, and

  4. salaries and benefits paid to spouses

Where a doctor or dentist is a sole practitioner, such disbursements are normally charged in the practice account. They are expenses incurred wholly and exclusively in connection with their profession and are allowable. They are treated as any other expense of the business.

In the case of a medical or dental partnership, it is necessary to establish which expenditure should be paid out of partnership funds and which are to be borne personally by the practitioner. In ideal circumstances, this will be set out in the partnership deed. Often the deed is silent and the position should be confirmed in writing.

In these circumstances, the partnership accounts do not reflect the full costs of the partners. It is

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

Relief for employee share schemes

Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not

14 Jul 2020 13:21 | Produced by Tolley Read more Read more

Terminal trading loss relief

Terminal trading loss reliefTerminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period.

14 Jul 2020 13:49 | Produced by Tolley Read more Read more

VAT registration ― artificial separation of business activities (disaggregation)

VAT registration ― artificial separation of business activities (disaggregation)This guidance note should be read in conjunction with the VAT registration ― compulsory guidance note and is relevant to persons established or resident in the UK. Persons that are not established or resident in the UK

14 Jul 2020 13:57 | Produced by Tolley Read more Read more