Managing business tax for doctor's surgery ownersPublished on 2nd July 2018 2018-07-02T12:26:19+00:00 - Last update on 16th October 2018 2018-10-16T14:10:45+00:00
As a medical practitioner, your main focus is going to be the welfare of your patients. However, you also need to manage the many responsibilities of being a business owner, including tax. Every day that your doctor's surgery is open and generating an income from providing treatment adds to the amount of tax that you will need to contend with. Fortunately, with ‘Making Tax Digital’ you can now handle your tax affairs remotely online. However, the way in which tax is being handled is constantly changing. So to help you stay on top of your practice’s tax, here’s a recap on what you need to take into account.
What does ‘Making Tax Digital’ mean for my doctors surgery?
As the Government continues to roll out their ‘Making Tax Digital’ scheme, you need to be aware that if you run a VAT-registered surgery you’ll be obliged to maintain digital records of your practice’s activities and taxable income. This will also need to be reported directly to HMRC on a quarterly basis. So as more and more changes are introduced, you should also take in account:
- Rather than using online forms, GPs will need to file their reports directly to HMRC using the relevant software
- Reports must be submitted every quarter
- The information that you provide will automatically be compiled with your partners’ tax liabilities and tax returns, alongside any information that HMRC currently holds, making it easier for you to manage and control
- This will help you stay on of your practice’s tax obligations, whilst also making it easier for you to claim tax returns throughout the course of the year.
How can cloud software help?
For many practice owners, cloud software can prove an invaluable means of managing their tax affairs. As well as offering you automatic bank feeds, cloud software is also making it easier to budget, train, manage payrolls and stay on top of any repeat invoices. Just some of the cloud software systems that your practice could benefit from include the likes of Quickbooks, Xero, Taxfiler, Taxforward and 123efiling.
What finance solutions are there to help me stay on top of my tax?
Despite the changes that are being introduced, staying on top your tax affairs can still prove a challenge. Although you can now keep track of how much tax is owed from your doctor's surgery and when, making sure that you’ve got the necessary funds to settle HMRC’s demand could be too much for your practice to handle. But rather than forcing your doctor's surgery into financial difficulty, there are a wide range of finance solutions available that could help, including Merchant Cash Advance, Overdraft Replacement and Invoice Finance. All you need to do is source an agreement that’s suitable for your practice.
Need help staying on top of your tax?
Although managing your tax affairs isn’t the most fun and exciting part of running a doctors practice, it’s an obligation that you can’t afford to ignore. HMRC takes a dim view of any business owner who fails to resolve their business tax affairs on time. Despite the government’s ‘Making Tax Digital’ making it easier for you to manage your tax affairs, making sure that you have the necessary funds available to cover the balance could prove problematic. However, help is at hand.
At Rangewell, we’re an Access to Finance specialist working with over 300 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide through the application process. We’re with you every step of the way and specialise in medical finance for professionals just like you. So if you need help paying your practice’s tax obligations on time, apply for Doctors Surgery Finance today or find out more with Rangewell.
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