Making Tax Digital for General Medical and Consultancy
Taxation can be a complex area people who work in the medical sector – for example the NHS pension, sources of consultancy income, GP practice accounts amongst other things. Unfortunately, many accountants claim to be specialists in the sector but are not.
At Folkes Worton you will work with a specialist accountant that will help guide you through the compliance process along with providing with up-to-date advice on where you can make tax deductions.
It’s important that the right advice is given in respect of tax deductions to avoid problems down the road, examples are:
- Professional fees or subscriptions paid to an organisation approved by HMRC. This is usually the most significant category for general medical practitioners and employees in the medical sector and HMRC holds a list of organisations it has approved as deductible for tax.
- Certain travel expenses.
- Donations made to charity via your payroll.
- Any payment by an employee to an occupational pension scheme such as the NHS pension scheme.
When it comes to MTD ITSA, it important that General medical & Consultants are partnered up with the right software apps, having the facility to link income and take photos of expenditure when on the move and link to the software should result in a time saving and more accurate accounting records. The physical records can then go straight in the bin. In addition, with the right solution you should be able to get your chosen software to generate invoices and link to your bank accounts. This should definitely result in administrative time savings and provide much clearer financial information.
The licencing and support cost can be an issue and will need to be considered for general medical & consultants. A one-year subscription for existing accounting software is often more than £200, and an MTD system will require a subscription year on year. That’s a lot of money over the life of a career in medicine.
Why do you need the specialists at Folkes Worton:
Software companies won’t generally be able to give you accounting advice and, even if they did, they might not know about the intricacies of accounting for general medical & consultants which have a number of industry-specific rules.
