New agreement reached to allow tax relief on MRCS exam fees!
The Royal College of Surgeons have finalised an agreement with HMRC to allow trainee surgeons who are contracted as Speciality or Core trainees and pay the MRCS exam fees themselves to claim tax relief on their fees.
It is reported that the R.C.S. council member with responsibility for examinations, Miss Fiona Myint supported the decision, “It is very good news that tax relief can now be claimed on the examination costs, as the MRCS qualification is a requirement for doctors who wish to enter higher specialist surgical training This is a very positive development for trainees and for surgery as a whole.”
It’s important to know that you must claim for the tax relief and it won’t be refunded automatically. If you fill in a tax return each year the MRCS fee needs to be entered in the correct box on your return.
Do you know what other tax reliefs you are entitled to as a doctor?
Hundreds of doctors are missing out on legitimate tax rebates on their work expenses.
These are just a few of the most common tax reliefs that can be claimed in addition to your MRCS fees:
1. Membership fees for Professional bodies.
As with the MRCS exam fees, professional bodies must first secure an arrangement with HMRC to be considered ‘allowable’. Most medical bodies like the GMC, do have such an agreement, but you do need to check before submitting a claim. If you pay the fee yourself and your employer does not refund the cost then you are entitled to a tax rebate.
After making an initial claim, your tax code will change so that you continue to make this tax saving into the future!
2. Professional Indemnity Insurance.
Again, your insurance provider must be on HMRC’s ‘allowable’ list and you must cover the cost yourself. An example is the General Medical Council (GMC).
3. Using your own vehicle.
This does not apply to the daily home to workplace commute. But it does involve moving between different work locations. This could mean working at different clinics, patients’ homes, practices or hospitals. If you are moved to a different workplace location for anything up to 24 months, then you may also be able to claim for business mileage.
4. Purchasing Equipment.
If you are not reimbursed for equipment that you have bought solely for work purposes then you are entitled to make a claim for their cost. An example is a stethoscope and you will usually need proof of purchase as evidence.
How much tax back can I claim back as a Surgeon?
There is no simple answer to this as each claim is unique. You can usually claim 15-20% of the purchase price, or 40% if you are in the higher rate tax bracket.
There are other factors to take into consideration, such as if a capital allowances claim has to be made and which tax year you bought the item.
Remember that your first claim can be backdated up to four years! This means (as an example) if you sat your MRCS exams in 2010-11, you can still make a claim for tax relief on the fees up until 5th April 2015.
How do I claim a MRCS tax rebate?
You should make your claim on a P87 form or on a self assessment tax return if you complete one.
The tax office will refund any overpaid tax directly to your bank account or by cheque if you prefer.
