The following Owner-Managed Businesses guidance note by Tolley in association with Julie Butler 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.
This is perhaps more important to consider when communicating with a client as they may fail to see the relevance of a distinction between items, or see relevance where there is none. HMRC has been responsible for a number of ‘civil investigations’ against medical professionals, after its intelligence suggested widespread abuse of tax legislation by the profession as a whole. Many of these investigations arose from the Tax Health Plan (THP) disclosure scheme that ran until 2010, and HMRC continues to be especially vigilant where the medical profession is concerned.
Earnings received by a doctor or dentist may include any of the following:
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,
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