| Frequently
Asked Questions
We believe since the UK tax laws changed 6th April 1996
many doctors simply do not understand their rights and legal obligations
under the Self Assessment tax laws. What follows are the most frequently
asked questions:
Will I have to complete
a tax return each year?
This is very much dependant on your level and sources of income. The vast
majority of SHO third year doctors and above should be completing tax
returns.
My job is taxed at source
by the NHS so why have I been sent a tax return?
Some NHS doctors who pay tax at the higher rate of 40% and wish to claim tax
relief on your professional expenses are required by law to submit tax
returns each year even though your income has already been taxed.
My colleague is not completing
tax returns but I am, we earn the same each year, why should I be sent
one and not my colleague?
It will only be a matter of time before the Inland Revenue investigate
your colleague. The Inland Revenue can send up to six years of tax returns
if they believe they are necessary. You may also be required to pay daily
interest and penalties if you owe tax.
I think I should be completing
tax returns but as yet I have not been sent one. Should I contact the
Inland Revenue myself?
Yes, it is every taxpayer’s legal responsibility to keep the Inland
Revenue informed. Many doctors are sceptical when approaching the Inland
Revenue. Some think they are not paying enough tax. This is incorrect,
most junior doctors are three or four times more likely to be incorrectly
taxed than any other professional. It is therefore up to the individual
taxpayer to reclaim the tax back from the Revenue. You only have a certain
amount of time in which to do this.
I started my first job
in the UK many years ago. Can I claim back my overpaid tax and expenses?
Yes, the Inland Revenue allows accountants to review your tax affairs
up to 6 years retrospectively.
If I chose any of the options
mentioned would you complete my tax returns and manage my tax affairs
on an ongoing basis?
Yes.
Am I breaking the law if
I do not complete a tax return?
Yes. If you are legally required to complete a tax return and ignore the
Inland Revenue’s request you will receive fines, daily penalties,
determination notices and court proceedings. They will not accept ignorance
as an excuse.
My colleagues only job
is his NHS salary which is taxed at source. Each year he claims for his
exams, courses, books and many more expenses. Can I do the same?
Your colleague is running a serious rist of investigation by the Inland
Revenue as these expenses are not allowable against his NHS income. When
the Inland Revenue investigate his tax affairs he will be required to
repay any refunds plus daily interest with possible penalties and surcharges.
I have heard accountancy
fees can be very expensive, is this correct?
Some are. Many accountants will charge £300 for a basic PAYE tax
return and £2,500 to £4,000 per annum for Limited Companies
including hourly charge out rates. Our fees are quoted on a fixed fee
basis starting from as little as £12.12 per month. Remember, not
only is the fee important but also the quality of advice and service you
receive, in particular the amount of tax your accountant is saving you
each year.
How do I contact
you?
Simply contact us via telephone on +44 (0) 161 872 1616.
Or,alternatively, you can fax us your enquiry on +44 (0) 161 872
1919, email us at enquiries@mckenzie-knight.com
or write to us at McKenzie Knight & Partners, McKenzie House, 597
Stretford Road, Old Trafford, Manchester, M16 9BX, United Kingdom.
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