Mark
This highlights the difference between taxation under Schedule D
(self-employed)(... an expense incurred wholly and exclusively because of
your business) and Schedule E (employee)(... an expense wholly and
necessarily incurred ..).
In the first, any expense which is related to the conduct of business (the
paper clips which secure patients' notes together) is allowable; in the
second, only items without which you cannot fulfil your employment contract
(stethoscope etc) are so allowed.
What about exploring the possibility of a peppercorn contract with the
Ambulance Service - for a £1 a year, you'll provide a service for them? That
way, you're fulfilling a contract of employment. Mind you, you'll have to
pay PAYE and NI on that £1! The other way might be to form yourself into a
company, providing medical services (e.g. private reports etc). As a company
Director, you are then taxed under Schedule D for that portion of your
income arising.
Take advice from an Accountant - it can be well worth it!
Andrew Mowat
-----Original Message-----
From: [log in to unmask]
[mailto:[log in to unmask]] On Behalf Of Mark Nettleton
Sent: 30 June 2000 20:31
To: acad-ae-med; [log in to unmask]
Subject: tax problem
Im a salaried MOD GP and for the first time I'm having a problem convincing
the tax man that work i do for gratis in the pre-hospital world is "an
essential and integral part of my job"-hence there questioning my claim for
tax exemption on a few miles of car mileage and a few quids worth of
equipment.
Anyone encountered similar problems or have any advice?-maenwhile i'll
battle on with appealing
Dr Mark Nettleton MBBS MRCGP DGM Dip IMC RCS Ed
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