Why is an Accountant Important for Surgeon?
A surgeon specialises in treating the ill patients needing an operation. If you are a surgeon, the daily routine of operating on your patients may make you tired and put in stress. Between patients, stress and weariness, you may not be able to give the attention for the financial aspect of your practice.
Finance is a major part of your practice. Without a good finance, your practice can barely survive. For managing finance, the knowledge about several things like accounting, tax, VAT, HMRC rules and regulations is very essential. Moreover, with the deadlines, penalties, and changing legislation, the tax system has become very complex over the years.
Since your primary job is to take of your patients, you are not likely to be well versed with all these details. We have highlighted some of the scenarios where an accountant can be of great help.
Are you employed by the NHS?
When you’re employed by the NHS and doing private practice work, it is important you state your income for tax purposes before being identified by HMRC. If you do this on time, both the National Insurance position and entity through which you trade must be considered. With an accountant working for you, you will get an expert advice on these matters.
Are your affairs visible for tax purposes?
As mentioned earlier, when carrying out private practice work, income should be visible. Even so, it may be more tax efficient for operating through a limited company. These things are better handled by the accountants as many things need to be considered under such situation. And no other can calculate the potential tax savings for you like them.
Do you know about your tax code?
Reporting your tax code wrong can seriously harm your finance. Whether you carry out PAYE work and non-PAYE work i.e. private work, you should be aware of your tax code. It is your responsibility to check if the tax code is correct or not. If you end up using a wrong tax code, you will be expected to pay more tax than you are supposed to. Accountants are familiar with the tax codes and can always help with the issues related to it.
Do you know how to claim your tax relief?
Being a surgeon
, depending on the terms of your employment contract, you can claim tax relief on the costs you incurred during training, professional subscriptions and indemnity insurance.
Are you aware about the impact of your personal pension contributions?
Are you paying into the NHS pension scheme? If you are, you need to be aware that you are not contributing too much than a certain amount. It is because you could suffer a tax charge. If you have a final salary scheme then it is applicable as these types of pension contributions are based on the pension value changes as opposed to the amount paid in. Due to this, monitoring becomes difficult which is an essential part of tax planning. These matters are better handled by the accountants.
Do you own a property that is rented out?
If you own a property which is given for a rent, you need to state the rental income. In case if you need to sell the property, tax may be due and you will need help calculating the tax due on it. As accountants are well versed with the tax issues and the costs you can offset against the rental income, they can help you with the terms of potential reliefs available on disposal.
If any one of the above situations is applicable to you, contact an accountant and get him/her help you immediately.
Harley Street Accountants is an accounting firm with a group of medical accountants
in London specialising in all types of accounting, tax, VAT , audits services for medical professionals including surgeon, doctors and GP. For details, contact us today at
020 7060 9556.