All types of businesses can benefit from the touch of professional accountants, and the medical field is no exception. Many healthcare professionals, such as nurses and locums, outsource accounting tasks like bookkeeping, payroll and tax returns. While there is no end of choice when it comes to accountants, a specialist accountant, such as AudTax, has in-depth knowledge of accounting for the medical industry.
Healthcare has specific accounting and taxation concerns, so it’s wise to choose a specialist medical accountant to take care of your finances. They will have specialist knowledge on subjects like NHS pensions and medical tax reliefs, which can help maximise business and personal income.
AudTax is a specialist accountant providing services to clients in the medical profession, whether they are consultants, self-employed individuals, contractors or limited companies. We work with doctors, locums, nurses, dentists, opticians, pharmacists and other medical professionals to ensure they understand their tax requirements, maintain a positive cash flow and maximise their income. For a consultation, please get in touch.
What are the benefits of outsourcing to a specialist medical accountant?
More time for your patients
As a medical professional, you would no doubt appreciate more time with your patients and less time calculating taxes! By handing over things like bookkeeping, payroll and annual tax returns to professional accountants, you could save precious time to focus on your workload or to take some much-needed rest time.
Advice on business structure
As a self-employed healthcare professional, it may be more beneficial to set up a limited company rather than operating as a self-employed sole trader. A specialist medical accountant can advise you on the tax implications of different business structures so you can decide which is the most profitable for you and your business.
Self-employed healthcare professionals deserve to hang on to every last penny they earn, but many lose out due to a lack of knowledge about taxation. Medical personnel can claim expenses to reduce their tax liability on things such as:
- mileage and travel expenses – for travelling to and from your place of work
- professional subscriptions – e.g. BMA and RCGP
- uniforms and specialist clothing – this includes cleaning, repairing, or replacing specialist clothing such as scrubs.
- electronic devices – e.g. mobile phones
Specialist accountants are well versed on what is and is not deemed an allowable expense for healthcare workers, so they can save you money and reduce costly mistakes.
When it comes to maximising company profit, some medical firms may be entitled to tax reliefs, such as Research & Development (R&D) tax credits. This includes more types of projects than you might think and could open up a valuable source of revenue.
Another way to save tax is through the Capital Allowances scheme, which allows medical practices to claim relief on medical equipment, machinery and vehicles. The legislation can be tricky to understand, so the advice of professional accountants can be very valuable.
Compliance and accuracy
Tax calculations can be complicated for self-employed healthcare professionals, especially if they have more than one source of income. A specialist medical accountant can ensure you meet your tax responsibilities and avoid common pitfalls. For many healthcare workers, the peace of mind this brings is perhaps the most compelling reason for using specialist accountants.
Maintain a positive cash flow
With the growing demand for private healthcare services following the pandemic, private medical practices may find that cash is going out of the business faster than it comes in. A specialist accountant can introduce robust processes and systems to avoid negative cash flow using the latest cloud accounting technology, such as Xero.
Pension and investment advice
A specialist medical accountant can provide guidance on NHS pension/superannuation schemes and help to calculate and submit annual statements. Depending on which pension scheme you are on, your accountant can also provide guidance on how to withdraw a tax-free lump sum from your pension fund.
For those in private practice, a specialist accountant can help you with succession planning to ensure your retirement goes as smoothly as possible.
What accounting services do businesses in the healthcare and medical industry need?
Healthcare practices and individuals can benefit from standard accountancy services, such as bookkeeping, with the added advantage of specialist medical accounting knowledge and advice.
In private practice, managing cash flow is crucial, especially in light of increasing demand following the pandemic. To avoid negative cash flow, scrupulous bookkeeping is required, but it is an unwanted burden for many healthcare professionals.
A specialist accountant can ensure your books are accurate so that you can keep a watchful eye on your income and outgoings without the worry of any unexpected or missing figures. With cloud accounting software, such as Xero, practice owners can record their financial transactions with ease, on any device and in any location.
Whether your company employs full-time employees or contractors, or both, an accountant can take the stress out of completing the dreaded monthly payroll. A specialist will understand the ins and outs of remuneration in the medical field and ensure that your valued staff are paid accurately and on time.
Tax returns for limited companies in the healthcare industry can be laborious and confusing. With the help of a specialist accountant, company directors can take a step back, knowing that their Corporation Tax return will be handled by an expert.
As a self-employed healthcare worker, having an accountant to complete your self-assessment tax return can be a godsend if you work long hours. Not only that, a good specialist accountant will identify every last expense you can claim for and highlight any tax reliefs you may have missed.
Contact Audtax – accountants for medical professionals
AudTax is a specialised medical accountant with a great deal of experience in helping individuals, employees and limited companies in the NHS and private healthcare industry. We give our esteemed healthcare clients proactive advice on issues such as the NHS pension scheme, corporation tax returns, business expenses and capital allowances.
To find out how we can help you, please get in touch.
Due to the complex nature of medical accounting, it is wise to consult a specialist such as AudTax.
Compared with a generalist accountant, a specialist medical accountant has a deeper understanding of things like NHS pensions, healthcare tax reliefs and medical practice expenditure. Therefore, they are best placed to help your healthcare business to become more efficient and profitable.