Doctors’ Tax Relief Information
The vast majority of doctors will be eligible to claim for doctors’ tax relief on professional fees and professional indemnity insurance. If you use your own car to travel to different hospitals, surgeries, or other work locations, your can claim business mileage. In addition, if you purchase any of your own medical equipment, you can apply for tax relief on these purchases.
On completion of a doctors’ tax relief claim for professional fees and professional indemnity insurance, your tax code should increase. This will result in less tax being paid in future tax years without doing the paperwork, unless your circumstances change.
On this page you will find information about:
Doctors’ Tax Relief for Professional Fees
- You meet the cost of the professional fee into an allowable professional body.
- You are not reimbursed for the cost of the allowable professional fee by your employer.
Which professional bodies are allowable by HMRC?
It is not possible to claim doctors tax relief for all professional bodies paid into by doctors. You can check if the professional body you belong to is on HMRC’s list, which is publicly available and regularly updated.
Doctors’ Tax Relief for Business Use of Car
- You use your own car, not for normal commuting from home to your usual place of employment, but to different locations. Such as, travelling to different clinics, hospitals or patients’ homes.
- Your employer requires that you move workplace to another location for a period that is expected to be for less than 24 months.
- If you use your own vehicle and you are paid the full mileage rate by your employer, but this mileage payment is taxed.
- If you use your own vehicle and you are not reimbursed the full mileage rate of 45p per mile up to 10,000 miles and 25p thereafter by your employer. You can claim the difference from HMRC.
- You can provide business mileage records which show the mileage incurred, along with any reimbursement made by your employer.
How much can I claim?
The business mileage allowable is affected by any mileage allowance paid to you by your employer and if that allowance is taxed or untaxed. The allowable mileage rates for the 2012-2013 tax year are:
- 45p per mile up to 10,000 miles and
- 25p per mile from the 10,000 miles mark
Any mileage allowance by your employer has to be deducted if the mileage allowance is not taxed
The total mileage allowance figure calculated is not the total amount of tax due back. The amount due back is either at 20% or 40% of the total mileage allowance figure. Tax relief is paid at the highest rate of income tax you pay.
A mileage claim can be made for the last four tax years.
Doctors’ Tax Relief for Tools and Equipment
The criteria for doctors claiming tax relief for tools and equipment are:
- The tools and equipment are purchased solely for work purposes.
- The tools and equipment are not reimbursed by your employer.
- Proof of purchase can be provided showing the date and cost.
How much can I can claim back?
The amount due back is dependent on which tax year the purchase was made and if a capital allowances claim has to be made for the purchase. A guideline would be 15% to 20% of the purchase total depending on your tax bracket.
For further Tax Refund information, please follow the links below: