Ian Tongue highlights some of the more common taxable benefits that private doctors might come across.
When it comes to paying tax on earnings, most doctors are familiar with the Pay As You Earn (PAYE) system and how tax and National Insurance is deducted on your monthly income.
But running alongside this are other components of your earnings that may suffer a tax charge. These are referred to as benefits in kind and are basically something you receive other than your salary that the taxman wants to tax you on.
The most common area that a consultant may encounter a taxable benefit is if they are provided with a car by their employer, commonly referred to as a company car.
This could be either through a salary sacrifice scheme such as the NHS Fleet scheme or perhaps through your own limited company.
Either way, the calculations of the taxable benefit is the same, although the consideration of whether to have a company car through your own company is more complicated due to the cost of purchasing or leasing the car coming out of your company funds.
If you are considering this, your accountant should prepare figures to estimate the true cost of having a company car through your own limited company.LOGIN OR REGISTER TO READ MORE……………