GPs have been warned not to miss the 31 January deadline by specialist medical accountants.
On 31 January 2025, GPs must file their tax return for 2023/24 online (unless they have already filed a paper version).
GPs who make payments on account must also make a 50% payment on their estimated tax bill for 2024/25.
Andy Pow, board member of the Association of Independent Specialist Medical Accountants, said: “GPs locums whose income has reduced, or who have changed to salaried roles, may well be dreading their January 2025 tax bills.
“Under normal circumstances, the January 2025 tax bill will comprise any outstanding amounts due for the 2023/24 tax year, plus the first payment on account for 2024/25. The payment on account is normally based on 50% of the total tax paid for the previous year. Consequently when income reduces, the payment on account can be too high.
“GP locums can apply to HMRC to reduce their payments on account where they believe their 2024/25 tax bill will be lower. However, if the payment is reduced by too much, HMRC will charge interest on any eventual underpayment once the tax return is submitted for that year.
“Before contacting HMRC, GP locums should consult with a specialist medical accountant to establish whether their change in circumstances does indeed offer a case for a reduction in their 2024/25 payment on account.”
Accountants have warned GPs to file their tax return on time to avoid payment fines plus interest on late payments. The Times revealed recently that HMRC made £900m in interest charged to late tax payments last year. An HMRC report revealed that last year 1.1m customers missed the deadline.
But after a year of difficult work conditions for GP locums, many GPs who have earned less than past years will be dreading their tax bill or payment on account.
HMRC has also warned that they received nearly 150,000 referrals about tax scams last year, up 17% on the year before. The majority were scams about rebates.
Dr Richard Fieldhouse, NASGP chair, said: “It’s always been tough working as a GP locum, often supporting struggling practices in deprived areas, with occasional quiet periods of now work. For the last year or so, it’s been far less of the former and much more of the latter.
“To fill these gaps, self-employed GP locums have been taking on other roles, such as salaried or shift roles, including the private sector and even outside of healthcare.
“This drop in income, together with a complete mixed bag of invoices for freelance sessions, and payslips from other work, turns a relatively straightforward tax return into something more like an LSD-fuelled really bad game of Dungeons & Dragons.
“Unless you’re one of the few locums who’ve managed to get through the last year relatively unscathed, the relatively small cost of hiring a specialist medical accountant is going to get you the magic you need right now to ensure you’re not paying a penny more than you need to on 31 January.”
NASGP members can ask an accountant about this year’s deadline at our event on Thursday 9 January. Find out more.