Tax Planning for Doctors
We help doctors, consultants, GPs, locums and private practice medical professionals plan their tax position before problems arise. This includes income tax, NHS pension tax, company profit extraction, private practice income, property income, capital gains, family tax planning and HMRC compliance risk.
Doctors often have several tax systems interacting at the same time.
A doctor’s tax position can involve PAYE, Self Assessment, NHS pension tax, private practice income, limited company accounts, property income, capital gains, foreign income and family planning. Good tax planning checks the whole position before decisions are made.
NHS salary, private income and company income need to be reviewed together.
The tax outcome can change depending on how income is earned, whether it is paid personally or through a company, and whether PAYE has already deducted tax.
Higher income can affect NHS pension annual allowance exposure.
Private practice income, GP profits, dividends and rental income can affect adjusted income, tapering and annual allowance charges.
Planning works best before the tax year ends.
Some options depend on timing, ownership, documentation, pension decisions, company records or whether HMRC deadlines have already passed.
We start with the facts, then build a practical tax plan around your medical income and future decisions.
Tax planning should not be based on one isolated tax saving idea. We review the income, ownership, pension, company, family and HMRC compliance position before making recommendations.
Income map
NHS salary, GP profit, locum income, private practice, company income, rental income and investment income.
Tax pressure
Income tax, National Insurance, Corporation Tax, dividend tax, pension tax and capital gains exposure.
Planning options
Salary, dividends, pension, spouse planning, company structure, expenses, ownership and timing.
Risk review
IR35, HMRC enquiry risk, benefit rules, director loan accounts, disguised remuneration and documentation.
Action plan
Clear next steps, records needed, tax return treatment and deadlines for implementation.
Tax planning areas doctors commonly need help with.
Every recommendation depends on your facts, income level, contracts, pension position and family circumstances.
NHS income and pension tax
Annual allowance, tapered allowance, Scheme Pays, RPSS, McCloud remedy and Self Assessment pension tax reporting.
Pension tax →Private practice income
Tax planning for clinic income, medico-legal fees, consultancy income, expenses, VAT risk and company structure.
Review income →Limited company planning
Salary and dividend planning, Corporation Tax, director loan account, pension contributions and profit extraction.
Company accounts →Property and capital gains
Planning for property disposals, second homes, investment gains, share disposals, crypto assets and 60-day reporting.
CGT planning →Tax planning support for doctors at different career and income stages.
We can provide one-off written tax advice, annual planning reviews, company tax planning, pension tax planning or pre-return tax reviews.
Annual tax planning review
Review of your full income position before the tax year ends, including allowances, timing, pension tax and expected payments.
Start enquiry →Private practice tax planning
Advice on income reporting, expenses, company use, VAT risk, spouse involvement, record keeping and Self Assessment.
Start enquiry →Company and profit extraction planning
Planning for director salary, dividends, pension contributions, company expenses, director loan accounts and Corporation Tax.
Company planning →NHS pension tax planning
Annual allowance, tapered annual allowance, Scheme Pays, McCloud RPSS and pension tax entries on Self Assessment.
Pension tax →Property and family tax planning
Planning for rental income, jointly owned property, capital gains, spouse transfers, investment income and estate considerations.
CGT planning →Returning doctors and foreign income planning
Planning for doctors returning to the UK, Middle East income, foreign accounts, overseas property and residence issues.
Foreign income →Private income can change the pension tax position, not just the income tax bill.
Doctors often focus on the income tax due on private practice or locum income. The wider issue is that additional income can also affect the tapered annual allowance, payments on account, tax code, child benefit charge, student loan position, pension charge and Self Assessment obligations.
We review the full position so that one tax-saving step does not accidentally create a larger pension, compliance or cashflow issue elsewhere.
Tax planning should be supported by records.
Dividend minutes, payroll records, invoices, expense evidence, pension statements and ownership documents should support the tax treatment.
Company planning must consider off-payroll working.
Locum and consultancy income paid through a company may still need IR35 or off-payroll working review before relying on company tax planning.
Pension tax can change the expected tax saving.
Higher income may affect annual allowance and tapering, especially for consultants, GPs and doctors with private income.
Some planning must be done before the transaction or year-end.
Property transfers, dividends, pension payments, company restructuring and capital gains planning are often timing-sensitive.
What we usually need for a doctor tax planning review.
The records depend on whether the planning is personal, company, pension, property, foreign income or family focused.
NHS salary, GP profit, private practice income, locum income, dividends, rental profit and investment income.
Pension savings statements, RPSS, Scheme Pays details and pension input figures where pension tax is relevant.
Company accounts, payroll, dividends, director loan account and Corporation Tax position if you use a limited company.
Property ownership details, rental income, mortgage interest, purchase cost, sale plans and joint ownership records.
A short explanation of the decision you need to make, such as incorporating, extracting profit, selling property, returning to the UK or reducing future tax risk.
A clear process for tax planning advice.
We scope the decision first, then review the facts, identify the options and provide a practical action plan.
Scope the planning question
We identify what decision you need to make, the tax years involved and the deadline for action.
Review facts and records
We review income, pension, company, property, family and HMRC records relevant to the planning point.
Compare options
We compare the tax outcomes, practical risks, compliance requirements and evidence needed.
Written advice or action plan
We provide clear next steps, filing treatment, records required and timing points for implementation.
Common questions from doctors about tax planning.
These answers are general guidance only. The correct advice depends on income level, contracts, pension position, company structure and family circumstances.
When should doctors take tax planning advice?
Ideally before the tax year ends, before setting up a company, before selling an asset, before changing how private practice income is received or before making pension-related decisions.
Can a limited company reduce tax for doctors?
Sometimes, but not always. The answer depends on IR35, income level, profit extraction, pension position, administrative costs, commercial purpose and how profits will be used.
Does private practice income affect NHS pension tax?
It can. Additional income may affect adjusted income and tapering, which can change annual allowance exposure.
Can you provide written tax planning advice?
Yes. We can provide written advice where the facts and documents have been reviewed and the scope of the planning question is agreed.
Need tax planning advice before making a decision?
Send a short summary of your income, NHS role, company or property position and the decision you need help with. We will confirm the likely records needed and next step.