The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
When considering a GP’s or GDP’s income, it should be appreciated that their income may be made of different types of earnings. In addition to this, within each self-employment or employment, they may have income determined with reference to various entitlements or expenses.
Earnings received by a doctor or dentist may include any of the following:
salary received from the NHS
expenses in connection with an employment with the NHS
self-employed income from the NHS on the basis of the relevant statement of financial entitlement
payment from the NHS relating to rent for use of home or provision of a surgery
self-employed income from private patients
cremation fees. This is a fee paid by a crematorium for certification allowing for them to dispose of a body.
improvement grants for development of premises
This list is by no means exhaustive and employments, or ‘appointments’ within the NHS, may take many forms. This note focuses primarily on types of income for services, whether that income is treated for tax purposes as employment income or income from a profession or vocation.
For more about how constituent income is treated, see the Doctors and dentists ― self-employed income guidance note.
The general principles that apply to employment status, outlined in the Establishing employment status guidance note, are equally applicable to doctors and dentists and this may be one of the areas HMRC considers the perceived ‘widespread abuse’ may be occurring in.
Many doctors and dentists may also consider trading through a limited company. While there have been changes to the dividend rates of taxation recently and changes to the treatment of goodwill on incorporation,
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