B5.630 Doctors and dentists—overview
Medical or dental practitioners are assessable under ITTOIA 2005, ss 3–259 (Pt 2) in respect of the profits of their practice which may include both private paying patients and National Health Service patients. However, most hospital appointments under the National Health Service are assessable under ITEPA 20031.
In Duff v Williamson2, a medical practitioner, became interested in radiaesthesia and decided to leave his general practice and devote himself full time to study that subject. He entered into an agreement with a company which was interested in radiaesthesia. Under the agreement the company agreed to grant the taxpayer a 'research scholarship' at the rate of £1,500 a year 'for the purpose of assisting [him] to obtain a high degree of proficiency in the theory and practice of radiaesthesia' in consideration of the taxpayer's covenanting, inter alia, to engage in research of radiaesthesia and use the knowledge so gained for the benefit of the staff and other employees of the company.
It was held that payments from the company to the taxpayer were made under the terms of a binding contract. That contract was made with him by virtue of his profession and was therefore assessable under the former Schedule D Case II.
In Maher v IRC3, the taxpayer was a dentist. She was a sole practitioner with both private and NHS patients. She was not an employee of the NHS and her earnings from the practice were taxed under the former Schedule D. She paid contributions