• SETTING THE GOLD STANDARD IN AESTHETIC TRAINING
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90% of UK adults will waste an unnecessary £7.6bn in tax over payment this year. With the increasing cost of medical indemnity and professional subscriptions many doctors are feeling the strain on their finances. Our recent survey on freelance doctors, showing that 4 out of 5 doctors were grossly overpaying on their tax bill.

I used to manage my personal accounts using complicated spreadsheets and time consuming software programs. At the end of the tax year I would spend days trawling through paperwork for my accountant. I decided there had to be a better way so I teamed up with specialist medical accountants and created a solution – MyLocumManager.com; a bespoke accounting toolkit for doctors, that makes it simple to record your accounts in real-time, in seconds from any device.

The first year I used it I knocked over £2000 off my tax bill. I learnt how to be extremely tax efficient and was able to manage all my accounts in very little time. Therefore, here are my 5 top tips on reducing your tax bill and becoming more tax efficient;

1. Claim all tax-deductible expenses

As a self-employed doctor you are allowed to deduct legitimate business expenses before paying tax. Many doctors are unaware of the types of expenses they can claim for. Also, although we often expense for the larger things such as medical indemnity, we often forget to expense for everyday business costs that we pay as part of our work. These include train fares, parking tickets, parking permits, stationary and medical equipment. If you use spreadsheets or have piles of receipts that you are “meaning to file” you could be one of the many people that miss a large proportion of their expenses out due to error or oversight. MyLocumManager allows you to record real time expenses straight to your phone. It makes it easy to log expenses on the go and also provides an audit trail of expenses. Try it for yourselves and see how much you could save.

2. Track Missed Payments

As a freelance doctor you are in charge of all your business earnings and chasing outstanding invoice payments. MyLocumManager allows freelance doctors to manage their business admin effortlessly from any device. You can generate invoices in one tap and use the financial dashboard to track outstanding payments. In order to be tax efficient it is key that you run your business admin meticulously, and MyLocumManager helps you do this.

3. Self Employed Car Costs

You can claim the running costs of a car, but not the total cost of buying one. If you use the same car privately you can claim a proportion of the total costs. You must record your car mileage for your commute to your practice and home visits. MyLocumManager automatically records all of your mileage so your accountant can offset these costs against your income. Don’t forget you can add any car repair or servicing costs onto the MyLocumManager expenses tool.

4. Make your pension work for you

If you are undertaking some NHS work then you are able to make contributions to your NHS pension as a sole trader. Contributions to your pension fund are fully allowable for income tax and the assets in the fund can grow free from tax. This can be an extremely attractive financial option for many. However, many doctors often miss out on claiming all their pensionable income. Manually completing pensions forms requires a huge time commitment. With MyLocumManager your pension forms are automatically prepared using your inputted work data and electronic, so can be generated and sent at the touch of a button.

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5. Financial Planning

It is important to keep a meticulous financial record of all your earnings, pension contributions and expenses. The HMRC require you keep these records for at least 5 years. MyLocumManager records all this data for you, making it easy for you to manage your locum business accounts. Getting an independent financial advisor and considering income protection may also be worthwhile. Consider investing in an ISA – you can invest up to £15,240 tax free. If your partner pays a lower tax rate it is possible to reduce the total amount of tax you pay as a couple.

As a busy locum GP, I have learnt the importance of having an effective system to organise your finances and tax reports. Creating MyLocumManager, has not only enabled me to easily prepare for my tax return which involves sending all the data from the site direct to my accountant with one click, but has also has helped thousands of my colleagues manage their business admin, saving them time and money.

It has been an amazing journey creating MyLocumManager and it is so rewarding hearing about the difference it makes to busy doctors. The site has been awarded a place on the NHS England Clinical Entrepreneur Scheme and we are now finalists at the ACW Awards Health Tech Start-Up of the Year .

This recognition and support drives me to keep innovating  for our users.

Dr Surina Chibber, Co-Founder www.MyLocumManager.com

If you are undertaking some NHS work then you are able to make contributions to your NHS pension as a sole trader. Contributions to your pension fund are fully allowable for income tax and the assets in the fund can grow free from tax. This can be an extremely attractive financial option for many. However, many doctors often miss out on claiming all their pensionable income. Manually completing pensions forms requires a huge time commitment. With MyLocumManager your pension forms are automatically prepared using your inputted work data and electronic, so can be generated and sent at the touch of a button.