Frequently Asked Questions for Doctors
Clear answers to common tax, accountancy and HMRC questions from NHS doctors, consultants, GPs, locum doctors and private practice doctors. This page explains when a tax return may be needed, how NHS pension tax is reported, what records are useful and when specialist advice should be taken.
Find the section that matches your issue.
Doctor tax questions usually fall into a few main areas: annual filing, PAYE, private practice, locum income, limited companies, NHS pension tax, HMRC letters and fees.
The answer can change depending on your income route, pension position and records.
These FAQs are written for common doctor tax situations, but the final position depends on the facts: NHS role, tax year, payslips, pension statements, private income, locum contracts, company records and HMRC correspondence.
Identify the issue
Tax return, PAYE code, pension charge, private income, locum income, company work or HMRC letter.
Check the tax year
Deadlines, amendment windows, Scheme Pays elections and HMRC disclosure routes depend on the year.
Collect records
P60s, payslips, pension savings statements, invoices, bank receipts, contracts and HMRC letters.
Get advice early
Do not wait until the filing deadline if pension tax, HMRC enquiries or historic errors are involved.
Tax returns for doctors.
Questions about when a doctor needs a tax return, what goes on the return and what records are usually needed.
Do NHS doctors need to file a Self Assessment tax return?
Not every NHS doctor needs a Self Assessment tax return. A return may be needed where the doctor has private practice income, locum income, rental income, foreign income, capital gains, pension annual allowance charges, dividends, high income child benefit charge or other untaxed income.
Is PAYE enough if all my income is from the NHS?
Sometimes it is, but PAYE does not always deal with everything. A doctor may still need a review for incorrect tax codes, professional fee relief, underpaid tax, overpaid tax, pension annual allowance charges or HMRC notices to file.
What documents do you need for a doctor’s tax return?
We usually request P60s, payslips, P45s, pension statements, professional fee records, locum income records, private practice income, expense evidence, bank interest, dividends, rental records and any HMRC letters.
Can you prepare a tax return if my records are incomplete?
We can help, but incomplete records may increase the fee and may require reconstruction work. A tax return should be records-backed, especially where HMRC could ask questions later.
Can you file late tax returns for doctors?
Yes. We can review the years involved, late filing penalties, interest, tax due and whether an amendment or disclosure route is needed. If HMRC has already contacted you, the response should be handled carefully.
Can you help with payments on account?
Yes. Payments on account often affect doctors with private income, locum income, GP profits or self-employed income. We can calculate what is due and whether a claim to reduce payments is appropriate.
Tax codes and professional fee relief.
Questions about NHS payroll, tax code errors, professional subscriptions, indemnity and employment expense claims.
Can doctors claim tax relief on GMC fees?
Doctors can often claim tax relief on professional fees and subscriptions where the body is approved and the cost is paid personally for the employment. The correct claim route depends on whether the cost relates to employment, private practice, company income or partnership income.
Can doctors claim BMA and Royal College subscriptions?
Often, yes, but each subscription should be checked. Some professional bodies and roles qualify for employment expense relief, while other costs may be treated differently if they relate to private practice or company work.
Can doctors claim medical indemnity insurance?
Indemnity may be claimable, but the claim route depends on the facts. It may be an employment expense, self-employed expense, partnership expense or company expense depending on why the cost was incurred.
Why is my NHS tax code wrong?
NHS doctors can have tax code issues because of multiple employments, emergency tax codes, previous underpayments, benefits, professional expense claims, duplicated allowances or income from other sources.
Can you claim a tax refund for previous years?
In some cases, yes. The time limit depends on the type of claim and tax year. We can check whether professional fees, coding errors or employment expenses can still be corrected.
Do junior doctors and trainees need tax advice?
Many junior doctors and trainees are PAYE-only, but they may still need support with tax codes, professional fees, relocation expenses, exam fees, multiple employments or tax refunds.
Consultants, GPs and private medical income.
Questions about private hospital income, clinic income, medico-legal fees, expenses, accounts and structure.
Do private practice doctors need a tax return?
Usually, yes, where private income is not fully taxed through PAYE. The return may need self-employment, partnership, employment or company-related entries depending on how the income is received.
Can a consultant put private practice income through a limited company?
Sometimes, but it must be reviewed carefully. Company use depends on contracts, IR35 risk, VAT, pension impact, profit level, extraction needs, administrative cost and commercial purpose.
What expenses can private practice doctors claim?
Common areas include indemnity, room hire, secretary support, billing fees, travel, software, professional subscriptions, equipment and training. Each cost should be supported and linked to the income route.
Is private medical work VAT exempt?
Some healthcare services may be VAT exempt, but not all medical-related work is treated the same way. Medico-legal reports, expert witness work, consultancy and non-clinical services may need separate VAT review.
Can private practice income affect NHS pension annual allowance?
Yes. Private income can affect adjusted income and tapered annual allowance calculations, which may increase or create an annual allowance tax charge for higher earning doctors.
Do GP partners need specialist accounts?
GP partners often need support with partnership profit shares, drawings, pensionable profits, tax reserves, payments on account, capital accounts and NHS pension tax issues.
Locum doctors, IR35 and limited companies.
Questions about PAYE shifts, self-employed locum income, agency work, umbrella arrangements, company accounts and IR35.
Do locum doctors need a tax return?
Often, yes, especially where income is paid gross, self-employed, through a company, from multiple sources, or where expenses, pension tax, rental income or other untaxed income need reporting.
Can locum doctors be self-employed?
Sometimes, but it depends on the facts. The contract, control, substitution, financial risk, who pays the doctor and how tax is deducted all need to be reviewed.
Can a locum doctor use a limited company?
Sometimes, but IR35 and off-payroll working rules should be reviewed. If income is inside IR35, the company and personal tax treatment may be different from normal salary and dividend planning.
What is IR35 for locum doctors?
IR35 looks at whether a contractor working through a company would be treated like an employee if the company were ignored. For locum doctors, the contract and actual working practices need to be checked together.
What if I was paid through an umbrella company?
We can review the payslips, deductions, employment contract and tax treatment. Unusual high take-home-pay arrangements, loan schemes or disguised remuneration concerns should be reviewed carefully.
Do locum doctors need Making Tax Digital?
Locum doctors with self-employed income may need to prepare for digital record keeping and future MTD requirements. The position depends on income level, tax year and filing obligations.
Annual allowance, Scheme Pays and McCloud.
Questions about NHS pension tax, pension savings statements, tapered annual allowance, Scheme Pays and RPSS.
What is the NHS pension annual allowance issue for doctors?
Annual allowance tax can arise where pension growth exceeds the available allowance after considering tapering and carry-forward. For NHS defined benefit pensions, the calculation is based on pension input growth, not simply employee contributions.
Does a pension savings statement mean I owe tax?
Not always. A pension savings statement means the pension input should be checked. The final result depends on the annual allowance, tapered annual allowance, carry-forward, other pensions and marginal tax rate.
What is tapered annual allowance?
Tapering can reduce the pension annual allowance for high earners. Doctors with NHS salary, GP profits, private practice income, locum income, dividends or rental income may need adjusted income and threshold income reviewed.
What is Scheme Pays?
Scheme Pays is where the pension scheme pays some or all of an annual allowance tax charge to HMRC. The member’s pension benefits are then adjusted to reflect that payment.
Does using Scheme Pays mean I do not need to report the charge?
No. The annual allowance charge and the amount paid by Scheme Pays still need to be reported correctly, usually through Self Assessment or the relevant HMRC process.
What is McCloud Remedy or RPSS?
McCloud remedy can change pension input figures for earlier years. A Remediable Pension Savings Statement can create additional tax, refunds, revised Scheme Pays positions or corrected Self Assessment reporting.
Letters, disclosures, fees and appointments.
Questions about HMRC contact, undeclared income, fees, engagement process and how we work.
Can you help if HMRC has written to me?
Yes. We can review HMRC letters about Self Assessment, PAYE tax codes, pension tax, undeclared income, penalties, compliance checks, disclosures and late returns.
What should I do if I missed private or locum income from a previous return?
Do not guess or send a rushed explanation. The correct route depends on the year, amount, behaviour, whether the return can still be amended and whether HMRC has already contacted you.
Can you help with tax disclosures for doctors?
Yes. We can assist with disclosures involving private practice income, locum income, foreign income, rental income, tax avoidance concerns, late returns or historic errors.
How much do your services cost?
Fees depend on the scope. A straightforward PAYE doctor tax return is different from private practice accounts, NHS pension annual allowance, Scheme Pays, IR35 or HMRC disclosure work. See our fees page for guide prices.
Do you offer fixed fees?
Where the work can be clearly scoped, we quote a fixed fee before work starts. If extra work is required, we explain the additional scope before charging.
Can appointments be done online?
Yes. Most doctor tax work can be handled online by phone, video call and secure document upload. You can also book an online appointment using our booking link.
Do you need ID before starting work?
Yes. We must complete onboarding and anti-money laundering checks before acting. We will request ID, proof of address and engagement approval before work starts.
Some questions need more than a general FAQ answer.
A general answer is useful for understanding the issue, but doctor tax often depends on specific records. This is especially true for NHS pension tax, Scheme Pays, IR35, private practice structures, foreign income, HMRC disclosures and historic errors.
If the answer depends on your tax year, pension statement, contract, foreign income, HMRC letter or company records, we recommend getting advice before submitting figures to HMRC.
Have a doctor tax question that needs a records-based answer?
Send a short summary of your NHS role, income sources, tax year, pension issue or HMRC letter. We will confirm the records needed and the next step.