High day rates, several practices, sizeable indemnity and GMC fees. Here's how Making Tax Digital for Income Tax affects locum GPs and doctors, and why you're almost certainly in scope now.
MTD for Income Tax is measured on gross self-employed income before expenses. On typical day rates, that's well over £50,000 for most locums.
MTD covers your self-employed income and business expenses. Pension contributions and NHS pension arrangements are dealt with separately from your day-to-day MTD records, although they may affect your overall Income Tax calculation. Your accountant can advise how they interact with your tax return. Keeping accurate digital records makes the year-end process easier.
Your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Record each session as you complete it so your quarterly total reflects the work you actually did.
Every practice is one income source. Recorded together, they total into a single quarterly update.
Significant, and fully deductible. Keep them recorded so your expense total is complete at year-end.
Travel to practices and ongoing training are deductible. Log them as you go and nothing is missed.
MTD reports your income and expenses. Your pension arrangements are handled separately, with your accountant.
Your time is stretched between practices. Clear Books pulls your income together and gives HMRC exactly what MTD requires, with your accountant a click away.
Record your work and costs as you go, and send your first quarterly update in minutes.
