With the looming deadline of January 31st 2018 just around the corner for both filing and payment of your tax return for the financial year 2016/17 Lantum and Locum Organiser would like to offer some advice for those who are partially or fully self-employed using the self assessment online service. These tips are also useful for those who choose to hire an accountant who can advise on ways to be tax efficient and save time and effort of filing your tax return. Both Lantum and Locum Organiser GPs can enjoy a 10% discount with Medic Accountants.
- Bank statements – You will need to review your bank statements (paper or online) to check and consolidate incoming earnings from your locum sessions and outgoing transactions for allowable expenses. You can cross-reference Locum Organiser’s Tax Data Package and / or the Lantum Tax Return Tool with your bank statement for income amounts and pension payments. We are improving and integrating the technology to make this even easier!
- Access codes – If you’re filing online for the first time, you require a unique taxpayer reference (UTR), which can be found on HMRC letters to create a government gateway account and your activation code will be sent in the post. If you have done this before you can use the Government Gateway user ID number to sign in to your HMRC online account, along with your password.
- Allowable expenses – can be subtracted from the self-employed income to calculate the taxable profit. These include indemnity, mileage, travel costs, equipment, accountancy fees and office costs. If you work from home (video consulting or a home-office) you can deduct a specific portion of your household utility bills. There is also a simplified flat rate option if you prefer. You can review the allowable expenses here. Ensure to keep your receipts (scanned or paper). Medic Accountants have developed a free app to help with this.
- Pension tax relief – You receive tax relief on contributions that you pay into your pension. Your self-assessment tax form is the place to claim additional tax relief on your pension contributions: another 20% if you’re a higher rate taxpayer, and an extra 25% if you’re an additional rate taxpayer. You can currently get tax relief on pension contributions up to 100% of your salary, up to a maximum of £40,000.
- File and pay on time – the deadline for paying is the same as filing: 31st January 2018. Ensure to transfer the money in time.
Locum Organiser is a toolkit to organise locum life, organise your diary and complete your tax return and pension. Lantum is a suite of tools to help GPs with all aspects of finding work and getting paid fast. If you use Lantum you get discounts on Locum Organiser – read here for more information.