Self Assesment for Medical and Healthcare Practitioners

 

Self Assessment Service

 

We offer a Self Assessment and Tax Return filing service for our medical and healthcare clients and will make your tax filing as simple as possible. We provide our services for England and Wales.

 

This webpage is a guide to these questions:

• What is Self Assessment ?
• Who needs to register to file a Self Assessment ?
• How to register for Self Assessment ?
• What is required for Self Employed people’s Accounts and Tax Returns ?
• When do I need to file Self Assessment Accounts and Tax Returns ?
• When do I need to pay my Income Tax under Self Assessment ?

 

What is Self Assessment ?

Self Assessment is the UK Tax Return process for individuals.

Self Employed health professionals must file their Year End Accounts and Tax Return by Self Assessment.

Self Assessment is part of the Income Tax system in the UK.

 

Who Needs to Register to File a Self Assessment ?

• Self Employed healthcare practioners
• Partners in a healthcare business partnership

 

How to Register for Self Assessment

We register our clients for Self Assessment.

To register yourself, here is more information at GOV.UK.

 

Self Employed Accounts and Tax

Self Employed people are taxed on the Profits of their business under the Income Tax system, ie. not on the money they take out of the business.

We provide a free bookkeeping spreadsheet for you to keep a record of your Income and Expenses.

First, we prepare Year End Accounts from your records. Income Tax on the business profits (and other personal income, if any) is then calculated as part of the Self Assessment process.

Class 2 National Insurance and Class 4 National Insurance are also payable, if your Profits are greater than the thresholds.

To summarise, if you have not registered your business as a Limited Company, you are regarded as being Self Employed by HMRC and you will be taxed under the Income Tax rules.

Self Employed Accounts are less detailed than Limited Companies, because only a simple Profit and Loss Account is required, so an accountants fee would normally be cheaper.

 

When do I need to file Self-Assessment Accounts?

Our main accounting and tax service is to file Self Assessments for our healthcare practitioner clients.

Income Tax is assessed in “Tax Years”, which run from 6th April to 5th April the following year. For example the tax year 2023/24 runs from 6th April 2023 to 5th April 2024.

Your Tax Return must be filed, by Self Assessment, online by the 31st January following the tax year just ended, ie. 5th April.

The Self Assessment Tax Return for the tax year 2022/23 (6th April 2022 to 5th April 2023) must be filed online by 31/1/2024.

It is simplest to prepare accounts to 5th April each year. For example, if you started a business on 1st September, just prepare accounts from 1st September to the following 5th April. These accounts should be filed online by a tax return by the following 31st January.

We recommend that you start the accounts and tax process in good time.

We also believe that your Year End Accounts should be prepared for your own benefit, and we will help you understand them.

Tax is frequently the only reason why businesses prepare their Year End Accounts. As a result it can be quite stressful and gets low priority. However, delays can be costly.

Penalties are charged by HMRC if a Self Assessment is filed late.

 

When do I need to pay my Tax and National Insurance under Self Assessment?

Income Tax and National Insurance must be paid in full by 31st January for the previous tax year. Eg, for Tax Year 2022/23, ended 5th April 2023, Income Tax and NI is payable by 31st January 2024.

Once a business is into its second year, and tax payable is greater than £1,000, Payments on Account are collected in the January of the tax year itself (6th April to following 5th April) and then the following July.

Payments On Account are only estimates and are collected in the two equal instalments (31st January and 31st July). Any balance of Tax and National Insurance still owing has to be paid by the following 31st January.

This is a complicated process for people who are new to being Self Employed. Please visit our Payments On Account webpage for more details.

 

Student Loans

For Self Employed people, Student Loan repayments are also collected through the Self Assessment / Tax Return process.