In recent years the Revenue have updated their computer systems and are able to tie up payroll returns to individual taxpayers much better. We’ve seen a large number of doctors in recent months who have not been required to complete tax returns, but who have received notifications of, usually, underpayments for past years which have come as a complete shock to them.
So what do you do if you receive one of these calculations? Either consult a professional – or if you feel confident that you can check it yourself, check it – do not just ignore it. Frequently it will be a case of a P45 not following correctly between employments, or concurrent employments not having been taxed correctly. If you have not made a claim for professional subscriptions now is the time to do so, as it will reduce an underpayment.
If you think you may fall within the ‘Bannerjee’ case – if you have a training contract, a training number and your employment is predominantly to train (rather than to practice medicine) – then you may be able to claim training costs.