Higher-earning GPs without extra income can skip tax returns: HMRC

3rd May 2024 by NASGP

Higher-earning GPs without extra income can skip tax returns: HMRC

GPs earning between £100,000 and £150,000 are due to receive a letter from HMRC about changes to the rules on tax returns, Accountancy Daily reported this week.

Salaried GPs earning higher sums through PAYE will no longer need to file a self-assessment tax return, providing they have no other income.

This change is due to the fact that the employment income threshold was raised for the 2023/24 tax year.

HMRC will write to those who filed tax on a return that showed income between £100,000-150,000 in the 2022/23 year.

Those who receive PAYE income below £150,000 will still need to file a return if they receive income or benefits, such as:

  • Untaxed income over £2,5000.
  • High income child benefit charge.
  • Self-employed gross income over £1,000.

Tori Ferguson, tax manager at Honey Barrett, said: “It’s a welcome change for those with simple PAYE tax affairs, and will remove many individuals from the self-assessment system who have no other reason to file a tax return. However, those below the new threshold may still need to double check their Tax position, and update their professional expenses claims.

“And the new thresholds do not apply to those with self-employed work in addition to PAYE employments, or who may need to file a tax return for other reasons. So taxpayers should still be encouraged to properly review any calculations from HMRC, and ensure that they should not file a tax return on any other basis.”

GPs’ salaries vary across the country but the BMA recommends that salaried GPs receive up to £113,626 per annum, and the Doctors and Dentists Remuneration Body recommends that salaried GPs be paid up to £104,086.

HMRC’s tool can help GPs calculate whether or not they need to file a tax return for 2023/24.

The tax office came under fire last year as costs for its Making Tax Digital project ballooned.

Dr Richard Fieldhouse, NASGP chair, said: “Although this news will apply only to a few salaried GPs, the busy fulltime nature of their work would no doubt mean they have even less time and focus for tax returns than the rest of us.

“And that the potential requirement for completing a return because of additional self-employed work, bearing in mind it’d be taxed at 40% or more as well, and with accountancy fees, makes taking on additional locum much less attractive.

“Therefore we welcome this news, and hope that future governments will consider reducing the administrative burden on all GPs regardless of their income.”

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