Doctor must keep expense records

ST writes: Last year I started in business as a GP locum at various health centres. I know I need to keep records in case the Revenue looks at my affairs, but don’t know exactly what to keep. I’m also unsure to what extent I can claim expenses. Is there anything else I should do?

Answer

You should examine your expenses to make sure that you are claiming where you can, writes Jon Sutcliffe, partner at Kingston Smith. This is an area to which the Revenue now pays more attention, and under self-assessment, it is your responsibility to make correct returns. The expenses you can claim for tax will vary, depending on your circumstances, but these would typically include telephone, stationery, professional subscriptions and insurance, computer and motor expenses, allowances for use of home, cleaning, courses and reference materials. You will need to be able to justify the proportion that you claim for business. You are recommended to keep all documentation for amounts you claim as expenses for six years. You will need to inform the Revenue that you are self-employed, and arranging to pay class 2 National Insurance contributions. In addition, be prepared for your tax bills. You will be better able to plan for these if you discuss your position with an accountant experienced in dealing with GPs.