Hospital doctor's private fees to a trust

Hospital doctor's private fees to a trust

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https://www.accountingweb.co.uk/anyanswers/assigning-self-employed-income

There was an old small discussion, which didnt get many responses or answers, so I'm just trying to resurrect it because I had done what I thought was a small tax return for a hospital doctor with just payroll income at a hospital, but seems to have become much more complicated.

It has transpired that he does treat private patients at that hospital, with the fees paid direct to the hospital who then pass it onto a charitable trust there, which pays for a research student, sundry lab expenses and for seminars/travel for doctors to attend. Apparently it is fairly common practice and been happening for many years.

HMRC are now arguing that the Doctor should be taxed on those private patients even though he has no dealings with the financial side of it and doesnt receive any benefit at all from them.

Just looking for the best way to deal with it...any advice appreciated. 

Replies (4)

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By SE
28th May 2014 11:59

Doctors Private Fees

You are correct in that this is a fairly common practice and is an area HMRC could have a field day with. This is touched on by HMRC with their example of cremations fees BIM54015. In essence HMRC will argue that if the doctor concerned is actually self-employed then the income is theirs and should be shown in the accounts. If the doctor is employed and does occasional DV1 work then if the income goes elsewhere and is not received then no liability.

I suspect if your client does see and treat patients then they may well be elf-employed. Have they registered as self-employed with HMRC. What have they told their medical defence provider?

PM me if you want to discuss this further.

 

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By Jeffre
28th May 2014 12:08

Who is the contract with

Maybe this is common but just because a Doctor treats private patients does not mean he would be taxable

The contact between the patient and whoever will be the crucial point. If Doctor Taxable if Trust not taxable

 

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By Richard Willis
28th May 2014 14:20

Another Mr Haddock!

I remember, in 'A P Herbert's Misleading Cases' a case in which Haddock wrote a book and donated all the proceeds to charity.  Totally out of date now of course but brings back memories!

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By kenny achampong
28th Nov 2014 12:44

An update

HMRC have said that the private fees should be included in turnover, but payments to the Trust can be claimed as a deduction. Panic over thankfully.

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