Hybrid Trusts Explained
Last year has been challenging for everyone, and some professionals, more than others, need to be praised for their amazing job and strength to face this situation. Doctors are at the frontline facing COVID and other diseases, risking themselves in order to protect others (as they have always done in their career), helping and saving lives. Carrying such an important mission, you don’t have to also face a hard time when doing your tax return; you can count on us. Several medical professions, including nurses, dentists, general practitioners, specialists, and surgeons, are represented by us.
We can assist you with your clinic’s accounting needs if you manage your own medical practice or clinic.
As a doctor, you might work as an employee, sole trader, own your own company or maybe have a family trust. If you are an employee, you will receive your payslips and your employer will hold a portion of your income as tax, of which you could get some back as a refund.
In addition to being accountable for your own working expenditures, contractors are also required to register for an ABN and GST if their annual revenue exceeds $75,000. But the idea behind claiming a deduction is the same whether you operate as an independent contractor or under a TFN arrangement. You claim for all your work related expenses on the doctor’s tax return.
Due to the nature of the profession, doctors usually incur a high number of work-related expenses that can be claimed as a tax deduction. In order to claim these deductions, you must keep a record to prove the expenses, the money should be spent by yourself and not have been reimbursed by your employer; Furthermore, the only costs that can be deducted are those that are directly tied to your business and revenue.
On their tax return, what costs may physicians deduct?
- Work-related self-education expenses: the medical profession usually requires that the person is always studying and updating their knowledge, hence there is a continuous education process happening. Course fees and textbook costs are examples of expenses that can be deducted from taxes for educational purposes.
- If you have finished the course with the intention of helping in an emergency work scenario, or if you are a designated first aid person.
- Wearing protective gear or uniforms, as well as maintaining them.
- Automobile costs for travels between work locations; regular excursions from home to work are not deductible.
- Travel costs incurred when you go to conferences, work in distant or regional locations, or for other work-related purposes.
- Parking fees incurred during work-related trips.
- Work tools, medical equipment and associated insurance, and phone costs (except for specific purposes) are examples of additional working-related expenses that may be tax deductible in the process of obtaining assessable income. Less than $300 technical journals and reference books, publications and subscriptions to medical journals, membership dues to professional bodies, the price of renewing your yearly practicing certificate, etc..
- Expenses related to a home office, including those for phone, internet, and power, as well as the depreciation of equipment and furnishings.
- The expenses incurred in handling tax matters, including the money spent to your accountant to file your previous tax return
- Professional indemnity insurance expense that is required to be maintained by medical practitioners
- Gifts and donations
- Lease charges: A physician may deduct these expenditures from their taxes if they rent a room in a medical center complex.
- Medical Centre’s or the clinic’s service fees, which is generally a percentage of your gross income. This could be anywhere between 30%+GST to 60%+GST depending on the contract of engagement with the medical centre.
- Books and Subscriptions: If you wanted to keep up with the latest information related to your field of work, you either bought books or kept up with subscriptions. Online services like Audible may also be eligible for reimbursement.
- Working from home: You might be able to deduct expenses associated with working from home on your tax return if you were required to offer telehealth services.
Here at A One Accountants, our team has experience in preparing and lodging tax return for doctors, so it’s one less concern to worry about. You can contact us by calling on 0386091889 to know more or make a booking to see one of our accountants.
Related posts
