Income tax 101 for doctors

iStock.com/DenisMArt

Doctors have to pay income tax along with a variety of other taxes when applicable such as capital gains tax, inheritance tax and National Insurance contributions (which are in effect a form of income tax on salaries and self-employment profits such as those for GP partners or certain locums).

But what are the income tax rules for doctors? Are there any tax-saving strategies for doctors?

Do doctors have to pay income tax?

Definitely, doctors do have to pay income tax especially on their salaries or any profits from locuming or partnership in the case of GP partners. There are a few things that are exempt from income tax, but these are few. Let’s look at the income tax rules for doctors first before considering what income is not chargeable to income tax.

Income tax is payable on a variety of sources including, among other things, if an individual receives employment income, profits from self-employment or partnership, or rental income from property. An individual may also pay income tax on bank interest and/or dividends, though there are different income tax rules for these.