Medico legal reports

Medico legal reports

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A new client has approached me and I just wanted to make sure I am doing this right from day one.

The client is employed full time in the health service so pays tax through PAYE as normal.

About 2 years ago she started doing medico legal reports during her lunch breaks or after work using the hospitals equipment etc (therefore not incurring any costs).

She hasn't registered for self assessment yet but should she register on the basis that she is self employed or just has untaxed income from her employment?

For every report she does, her employer gets a share (to cover costs and a sort of arrangement fee, etc) and she gets her income at an agreed rate.

As there will be no expenses (other than my fees) then the tax return will be simple, just total up the fees and put it in one box ... but should it be on the employment page or the self employment page or even page 3 (other taxable income)?

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Euan's picture
By Euan MacLennan
04th Jul 2012 17:03

You tell us

I don't know what a "medico legal" report is, but who is the customer?  To whom are the reports addressed?  Who pays "her income at an agreed rate"?  Who has agreed that rate?

If the reports are written for her employer for a fee stipulated by the employer and it is the employer who pays her fee (less its share), I would say that it is simply piecework overtime undertaken as part of her employment and that her employer should be deducting PAYE.

If a third party pays her fee, even if via the employer so that it can deduct its share, I would say that it is essentially self-employment.  Her tax return would disclose the agreed fees as income and there would be the employer's "commission" as well as your fees to disclose as expenses.  If she is competent to write "medico legal" reports and is employed full-time in the NHS, she is probably already earning more than enough to be able to defer Class 2 & 4 NIC.  If the annual income is less than £10,000 net, you could probably get away with disclosing it as other taxable income, rather than completing the self-employment pages.

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David Winch
By David Winch
04th Jul 2012 20:58

Expert witness

The client may be preparing professional opinions on the medical conditions of individuals who are involved in civil or criminal litigation.  For example, Mr X is injured in an accident - how bad are the injuries? when will he be fit to work again? will he be more limited in his future jobs (and hence income) as a result of the injury sustained?

 

Ordinarily a person acting as an expert witness in these circumstances will be instructed by a firm of solicitors (either for the injured person or the person being sued) and will be self-employed.  A written report is normally required (in England & Wales) and there may also be a need to meet with a similarly qualified expert instructed by the other side and possibly to attend court to give evidence and be cross-examined.

 

Alternatively an expert in a civil case may be instructed jointly by both claimant and defendant (and is then known as a 'single joint expert').

 

The expert needs to be familiar with the legal requirements of Part 35 of the Civil Procedure Rules and the supporting Practice Direction and protocol (in a civil case) or Part 33 of the Criminal Procedure Rules (in a criminal case).  If instructed by the Crown in a criminal case there are additional rules and procedures to be followed.

 

It is appropriate to have professional indemnity insurance as an expert witness can be sued (and there may be big money at stake).  Deliberately giving false or misleading evidence would be a criminal offence.  Inappropriate expert evidence can also result in professional disciplinary proceedings.

 

I would certainly recommend that your client attend a training session for expert witnesses.  A key point is that the expert's opinions must be unbiased.  The Practice Direction puts it in these terms, "Experts should assist the court by providing objective, unbiased opinions on matters within their expertise, and should not assume the role of an advocate".

 

So, in my view, it will be income from self-employment.

David

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By bigdave1971
04th Jul 2012 20:55

Sorry ...

Sorry I didn't explain what "Medico Legal" reports were.

David's first paragraph is exactly the kind of work I was referring to.

I haven't seen details of the level of employment income but I agree with Euan that the client is likely to be at a rate high enough to defer class 2 and 4 NICs.

 

 

 

 

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