A GP earning from five income streams hit a 60% marginal tax rate, paying £60 to HMRC for every £100 earned. Ndubuisi Egwim walks through how to structure multiple income sources and shares a doctor who missed professional expense relief for 15 years, losing tens of thousands.
There are countless examples. Feel free to share yours in the comments section as well if you've made a tax mistake. But I'll give you one more. A portfolio GP had additional professional income on top of their NHS salary, expert witness work, locum shifts, rental property, and was also an advisor to a health tech company. So this pushed him into the 60% tax trap, meaning that his additional income was effectively taxed at the marginal rate of 60%. That means for every extra £100 he earned, he only took home £40 and £60 went to HMRC. Now the question is not simply should this have gone through a limited company? Should he have put it in pensions and all that? That's too simplistic. The first question was what was the best tax structure for him? Did he review his tax from a systematic way? And if a company was appropriate, he could look at corporation tax. How much profit can he extract? And what are the wider tax consequences? Because structure matters. But structure only helps if it fits the actual work. Then there are professional expenses. In chapter 5 of my book, I share the story of Dr. Sarah, an NHS doctor who had paid professional expenses for 15 good years without claiming any available tax relief. She didn't even know about it. By the time she discovered it, she had already lost 10 years. She could only claim the current year and 4 years back. That amounted in thousands of pounds that she lost. In fact, tens of thousands. Now, if you're thinking this feels like a lot of work, or I need help applying Applying it to my own situation. I need support. I want to watch alongside other doctors to have this done. I have good news for you. If you want to go through the full ABCDE tax x-ray with me and a handful of doctors, and to actually walk through what you might be missing, I'm running the Doctor's Tax X-ray Workshop. The link is in the description. Now, this is a structured workshop session, not a webinar. We'll go through the ABCDE tax x-ray framework. Step by step, and you understand how to apply it to your own situation.
