Tax tips for Non-Consultant Hospital Doctors

We would like to draw your attention to some of the minor tax reliefs that are available to you, of which you may not be aware. In relation to claiming reliefs, there is a four-year time limit: for example, in 2009, you may only claim reliefs for tax years as far back as 2005.

In some cases, these reliefs can be added to your tax credits on an ongoing basis and you should contact your local tax office in relation to this.

Flat rate expenses

The Revenue has agreed flat rate expenses of €695 for doctors. These comprise €400 in respect of your contribution to the Medical Council and €295 in respect of clothing and equipment. A slightly lower rate applied for 2005. The expenses operate as a deduction from your marginal rate of tax.

You are also entitled to tax relief at 20% on your subscription to the IMO, to a maximum of €350.

The reliefs are presented as tax credits. For example, the relief on your subscription to the IMO is presented as a tax credit of €70 (20% of €350).

The reliefs can be added to your tax credits on an ongoing basis. You may also claim them for any prior tax year, back to 2005, if you have not done so already. You should contact your local tax office in relation to claiming.

PRSI refund

In respect of pension contributions, you are entitled to relief from PRSI on the contributions. Under your hospital pension scheme, the relief will already have been given. However, if you made additional voluntary contributions (AVCs) or pension contributions in respect of other income, they you may not have been given the PRSI relief. You may claim the relief by filling out a form which you can get from your local tax office, or by claiming on line. You can claim this relief for contributions back to 2005, if you have not done so already.

Medical expenses

You can claim tax relief in respect of medical expenses and dental expenses for non-routine procedures. You can only make a claim after the end of the relevant tax year. Again, you may claim for expenses back to 2005, if you have not done so. The rules in relation to claiming have been changed slightly over the years. Currently, you may claim for expenses in relation to yourself and any other person and there are no setoffs against the amount of your expenses. You can claim on line, or by filling out forms that you can get from your local tax office, or on line.

The above is not an exhaustive list of possible tax reliefs and we have not covered the more common ones with which you will be familiar.

Top Tax Tips for NCHDs

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