Personal Expenses

The tax rules governing personal expenses for salaried GP’s are strict and are by no means as generous as the expense rules enjoyed by self employed GP principals.

The rules state that an expense must be incurred ‘wholly, necessarily and exclusively’ in the performance of the duties of an employment.

Professional Subscriptions

e.g. – MDU, MPS, BMA, GMS, RCGP

These costs are always allowed by the Inland Revenue.  However, please note that in circumstances where the practice pays these costs on behalf of the salaried GP, then it is the practice that will receive the tax relief, not the salaried GP.

Motor Expenses

As an employee, salaried GP’s must claim motor expenses using the fixed profit car scheme.  This permits a claim of 45p per business mile for the first 10,000 miles then 25p for each additional mile.  It is not necessary to keep receipts for expenditure, but you must be able to support the number of business miles claimed.  Please note that regular commuting is not treated as business travel.

Medical Equipment

Any medical equipment purchased by the salaried GP will be deductible as an expense of their employment provided the expense is incurred ‘wholly, necessarily and exclusively’ in the performance of the duties of an employment. A salaried GP may consider that any medical equipment is purchased for this purpose, however, beware:-

The Inland Revenue might argue that ‘if a piece of equipment is necessary for an employment, then it will be purchased by the employer’.

Course Fees

Provided the fees are considered to be incurred ‘wholly, necessarily and exclusively’ in the performance of the duties of an employment, then the fees will be deductible for tax. 

A fee which will allow a salaried GP to gain an additional qualification or which will allow the GP to be able to work in a new specialist area may be considered to be ‘capital’ in nature by the Revenue and therefore not deductible for income tax.