Locum doctors may spend time on the road, traveling to different places, and may have multiple shifts in different locations. All this adds to plenty of expenses for fuel or transport in addition to subsistence costs for overnight stays (Accommodation Food etc.).
Depending on the exact details of how you carry out your work as a locum Doctor, GP, dental practitioner, some or all of those travel expenses may be tax allowable.
Motor/ Travel Expenses
Motor expenses can be claimed on a car that is used for business purposes. The expenses have to be apportioned so that only the percentage incurred ‘wholly and exclusively for the purposes of the trade’ are allowed.
Expenses which can be claimed by the locum company are :
- Cost of Travelling to a temporary place of work.
- The mileage which is allowed to be claimed is €0.59/kilometer.
- Car Parking, Toll, and Public Transport expenses can be claimed separately.
- If you are working in another city for work and have to stay in a hotel or pay for accommodation. Overnight accommodation and reasonable expenses can be claimed.
WHEN TRAVEL EXPENSES ARE PERMISSIBLE.
Travel expenses that are necessary to be incurred in order to perform duties of work are reimbursable tax-free.
WHEN TRAVEL EXPENSES ARE NOT PERMISSIBLE.
Expenses incurred which merely put an employee in a position to exercise his or her employment are not incurred in the performance of the duties of the employment. For example, expenses incurred on travel between an employee’s home and normal place of work are not allowable.
In most cases, the normal place of work of an employee/director of an intermediary (locum company) will be the premises of the intermediary’s client. Travel expenses incurred by a director/employee on the journey from home to the normal place of work (and vice versa) do not qualify for a statutory deduction under Schedule E. These expenses may not be reimbursed free of tax. The fact that an intermediary may undertake a series of short-term contracts does not alter this position.
The subscription costs we help our clients claim a deduction for on a regular basis are: eg Royal College of Surgeons.
An annual subscription to a body shown in the list approved by Revenue is allowable where either the subscription is paid by a self-employed individual or paid by an employee, and the activities of the body are directly relevant to the self-employment or employment.
- You can claim Professional training courses.
- You can claim home/mobile telephones by providing itemized bills and highlighting the business calls.
Consumed whilst travelling for locum purposes. You can claim for breakfast, lunch and dinner with or without receipts when you are away from home depending upon the number of hours you work in a day.
Accounts fee is tax-deductible which gives you tax savings of up to 50 % means expenses will be effectively halved.
Many other types of expenses can be claimed by self-employed locums. We provide our locum clients with detailed checklists and advice to ensure that all allowable expenses are claimed.
- All ‘reasonable’ work-related equipment and costs, such as medical tools, stationary, photocopying charges, software, IT equipment by providing the original receipts.
Everyone finds keeping business records a chore. However, we find that compiling your business records as quickly as possible after the year end is the best way of making sure that a claim for tax deduction is accurate and as high as possible.
If you lose a business receipt, it may still be possible to make a claim for a tax deduction as you may have other evidence of the expense. However, it may be more difficult to justify a claim and may also mean that the expense is simply forgotten.
What I Can Help You With
We can advise clients on:
- Which expenses are deductible for tax?
- How to make relevant claims.
- What percentage of a cost can be claimed as a business expense?
Contact us for specialist accountancy for Locums/Medical Doctors
If you’re looking to plan your finances for the future or trying to find an answer to a problem then get in touch today.