Self employed GP Locum expenses / capital expenditure

Drgoogooplez

Thanks everyone for your insight. And apologies for my final question... 

I'm planning on contributing to a SIPP pension to just below £100k because we use the free childcare hours.

If HMRC did decide an adjustment was needed. Would this tip me over >£100k or would the tax be due the following tax year? 
The £100k childcare cliffedge has got me anxious about claiming any expenses

Thanks for all your time. 

[Deleted User]

Drgoogooplez said:

Thanks everyone for your insight. And apologies for my final question... 

I'm planning on contributing to a SIPP pension to just below £100k because we use the free childcare hours.

If HMRC did decide an adjustment was needed. Would this tip me over >£100k or would the tax be due the following tax year? 
The £100k childcare cliffedge has got me anxious about claiming any expenses

Thanks for all your time. 

The adjustment would reflect the tax year in question. 

Give yourself a little leeway but ….. is the £100k before or after deduction of your superannuation? 

Superannuation comes off your taxable profit in determining whether the £100000 adjusted net income threshold is met. 

Drgoogooplez

I will probably earn about £120k gross and am currently not in NHS pension - (I'm aware this is against a lot of conventional advice but it's extremely expensive when you're paying both parts of the contribution).

My expenses / capital expenditure will probably be about £5-6k. My plan was to put the difference between taxable profit and £100k into a SIPP to make me eligible for childcare hours.

It would be financially crippling if I got adjusted back into the >£100k zone 

Drgoogooplez

Sorry to add to this. If HMRC decided to adjust me to just over £100k could I then donate to charity to get back below £100k? Or would that ship have sailed by then 

[Deleted User]

Drgoogooplez said:

Sorry to add to this. If HMRC decided to adjust me to just over £100k could I then donate to charity to get back below £100k? Or would that ship have sailed by then 

You can carry back Gift Aid contributions to a previous year but they must be paid PRIOR to submitting the return for the earlier year. 

Why are you paying both employer and employee parts - are you a long term locum with a practice?

https://www.bma.org.uk/pay-and-contracts/pensions/additional-pensions-advice/an-introduction-to-the-nhs-pension-scheme-for-locum-gps

Drgoogooplez

[Deleted User] said:

Drgoogooplez said:

Sorry to add to this. If HMRC decided to adjust me to just over £100k could I then donate to charity to get back below £100k? Or would that ship have sailed by then 

You can carry back Gift Aid contributions to a previous year but they must be paid PRIOR to submitting the return for the earlier year. 

Why are you paying both employer and employee parts - are you a long term locum with a practice?

I'm an adhoc locum for multiple practices and a PCN. 

I've negotiated with all of them to pay me what they would have paid in employers contributions as additional gross pay

SiliconChip

Do you not thinlk that as someone earning £120K that it would make sense to seek and pay for professional advice? It might well be that the cost of that would be recouped by the savings in tax resulting from the advice, and you're less likely to fall foul of HMRC if your advisor fully understands your circumstances (which nobody on here does).

Drgoogooplez

Thanks you've all convinced me to pay for professional advice. I like to think of myself as financially savvy but this has caused me a headache!

Thanks for everyone's help 

Jeremy535897

That is a wise decision with numbers like this.

DullGreyGuy

Drgoogooplez said:

Sorry to add to this. If HMRC decided to adjust me to just over £100k could I then donate to charity to get back below £100k? Or would that ship have sailed by then 

You submit the tax return after the tax year has ended... how are you proposing that you make a retrospective donation to get into the year that closed some months before?

I would strongly suggest based on your questions you need to spend a decent amount of time with an accountant to set you out on good foundations else you are just waiting for the future fall... at the moment you are the patient that has googled their symptoms and turns up saying they've got laryngeal leishmaniasis because they've been hoarse voice for a few days.