Self Employed Locum GP Tax questions

[Deleted User]

Jeremy535897 said:

neil5061 said:

Great thats perfect thank. And if I buy nice headphones or earphones I can put them in capital allowance presumably?

Wholly and exclusively allows for some personal choice, but not over the top. An overnight stay in a hotel far enough from home is OK, for example, but not the best suite in the best hotel. £3,500 on some 64Audio earphones would also no doubt be hard to defend. 

Good advice. I hope the op obtains advice (especially on joining the best pension scheme out there). A few years ago A locum came to me after being notified of a full enquiry. She had claimed the full cost of an Audi TT, full furnishing of her ‘room as office’ including some paintings and a music system. Genuinely she could not understand why she had been investigated and the online form must have been completed correctly as no errors were flagged up at the time. She refused to believe me when I pointed out that being able to progress to the next section of the return did not constitute HMRC acceptance and went elsewhere.

Jeremy535897

neil5061 said:

Jeremy535897 said:

neil5061 said:

Great thats perfect thank. And if I buy nice headphones or earphones I can put them in capital allowance presumably?

Wholly and exclusively allows for some personal choice, but not over the top. An overnight stay in a hotel far enough from home is OK, for example, but not the best suite in the best hotel. £3,500 on some 64Audio earphones would also no doubt be hard to defend. 

Fair enough I was thinking maybe 200 on noise cancelling ones.

If there's a business benefit to the noise cancelling.

neil5061

Jeremy535897 said:

neil5061 said:

Jeremy535897 said:

neil5061 said:

Great thats perfect thank. And if I buy nice headphones or earphones I can put them in capital allowance presumably?

Wholly and exclusively allows for some personal choice, but not over the top. An overnight stay in a hotel far enough from home is OK, for example, but not the best suite in the best hotel. £3,500 on some 64Audio earphones would also no doubt be hard to defend. 

Fair enough I was thinking maybe 200 on noise cancelling ones.

If there's a business benefit to the noise cancelling.

Practices can be extremely noisy!

Grumpy_chap

The OP should engage an Accountant to advise on the most tax efficient method to structure everything.

Outside of that, the OP appears to have some expensive tastes.  London location, £80k turnover.  Unless the OP has another income and / or rent / mortgage-free accomodation, a personal budget is required so the OP does not carry unaffordable liabilities. 

neil5061

There is other income but the self employed work only started in august so not a full year. 

[Deleted User]

neil5061 said:

There is other income but the self employed work only started in august so not a full year. 

Yes - no doubt you will have been on PAYE at a hospital - those contracts usually end on 31st July. That income (and tax deducted) also requires to be entered on your first tax return. Remember your first tax bill will not be until January 2022 and, even then, only based on, as you say, eight months profits. Your tax position will not really level off until January 2023 when a full years accounts are submitted.

neil5061

Understood. Have sent out a few emails to accountants (recommended by other medics). Does anyone have a ball park figure of what a reasonable quote would be taking into account previous employed income, new self employed income, expenses,  Stocks and shares which (probably wont go over the capital gains limit). 

[Deleted User]

Depends where you live. I am in NI where accountancy rates (and locum rates) tend to be cheaper than GB, so not best placed to advise on ballparks.

neil5061

Ok thanks. Fair enough. The other question I had was the second contract will be another personal contract due to the extortionate buisness contracts. Will that be ok? 

Ray_Coman

For the leased car, whether you are entitled to capital allowance will depend on the extent to which you own the car.  A capital allowance is a deduction from profits for the original cost of the car.  It is a percentage of the value of the car each year.  If the lease is effectively a hire purchase, you could be entitled to the allowance.