The December Tax Mistakes Costing You Thousands

In this video, I'm going to walk you through seven completely legal ways doctors and healthcare professionals quietly overpay tax every single year. And how to stop doing that now? Every December, HMR also quietly wins. Not because people are cheating, not because people are reckless with their taxes. Mostly because thousands of people, doctors, healthcare professionals, other professionals, forget to claim tax relief they're invited to. HMRC doesn't send reminders, they don't nudge you and they certainly don't chase you to give you some of your money back that you're entitled to. They just smile to the bank and let the money stay with them. And if you don't feel like giving HMRC a Christmas gift by overpaying tax you didn't need to pay, this video is for you. Because Christmas is when people slow down and reflect, you know. But January is when reality hits. When 31st of January, self assessment deadline, just right around the corner. You want to be careful with your taxes this period. So for those who are new here, you don't know me. I'm Dr. Andy Grim. I'm a former salaried NHS GP, investor for over 21 years and the founder of Moneywise Doctor, which has helped thousands of doctors and healthcare professionals, dentists, make smarter financial decisions and avoid costly mistakes. Now, about two weeks ago also, I published the Money Wise Doctor, which became an Amazon bestseller across categories like investing, personal finance, retirement planning and money management. It was built from real questions, patterns and mistakes I've seen from professionals like medics make again and again. But just to be clear, this is not professional or legal tax advice. This is just education based on experience and on financial rules and mistakes I've seen professionals make. These things were never thought to us. So today I want to give you something practical. These are sort of like tax wins. Number one is a £150 Christmas party rule. And as it's the festive season, let's start with that one. Yes, it's real. HMRC allows 150lbs per head per year for an annual staff event. It's completely tax free. And no, it doesn't have to be a Christmas party, it just needs to be an annual event. And there are a few things to watch out for. There's a trap here. Most people fall into. £150 is not an allowance, it's a hard limit. It's the cost per head and if it hits 151 pounds, HMRC just taxed the entire thing now, not the extra pounds, the whole thing. So you've got to Be careful not to cross that 150. That's HMRC's version of festive chair. And yes, sole directors of limited company are still qualified. You are the employee of your company via sole director. So yes, you can take yourself out and maybe your partner out for a Christmas meal, theater or event, even spa, as long as the cost stays within the limit. So plan it properly, count the heads whether you're going to take taxes, drinks, whatever, use correctly, this could be one of the cleanest and simplest tax wins available for you. Now. Number two is capital losses. Most people never claim this one, they don't even know about it. Let's move on to that one. It's one of the most painful ones, capital losses. If you've ever sold shares at a loss, closed a bad investment, made early investing mistakes, you may be entitled to claim back some of that reduced future capital gains tax. That's how you claim it back.

You can't invest confidently if you are one emergency away from financial disaster. You need to build your financial foundations first. I've read over 250 books on personal finance and business. Not one of them explains specific issues that affect medics like NHS pensions, financial anxiety, investing, student loans and much more. Hi, I'm Dr. Andy Egwim. I'm the founder of moneywisedoctor.com for over 21 years I've been investing and studying personal finance. In fact, three years ago, I left my salaried NHS GP job after achieving financial independence. Since then, over 1,200 medics have joined.

Joined our Tax Efficient Investing Master classes.

That are totally free and much more than that. 10,000 doctors and healthcare professionals have used my content to make smarter financial decisions and avoid costly mistakes. That's why I wrote the Money Wise Doctor. The Money Wise Doctor is a step by step guide, is a book to simplify the path from confusion to clarity for medics and to help you make smarter financial decisions and avoid costly mistakes that can affect your future. Already helped thousands of doctors learn how to save smarter, invest tax efficiently and finally feel in control, in charge of their financial future. Now, if you're ready to gain clarity, confidence and control with your money, the.

Moneywise Doctor book is now available. Click on the link below to order your copy now and start your journey to financial freedom.

So here's what most people don't know. Capital losses can be carried forward indefinitely. But and this is crucial, they must be reported to HMRC within four years of the tax year the loss occurred. If you miss that deadline, that relief is gone forever. This matters more than ever because capital gains CGTR NOA exemption has fallen from £12,300 to £3k now. So I've seen medics pay capital gains tax years later on gains that could have been legally reduced or even completely wiped out simply because nobody told them to report the earlier losses. I used it to offset the swans. HMRC won't remind you. They will happily take the full tax. 3. This is the £50 trivial benefits rule. Call it director's favorite. To be honest, this one feels almost too good to be true. If you run a limited company, your company can give you or an employee a gift worth up to £50 completely tax free. It can't be cash though, it can't be a cash voucher and it cannot be a reward for work or bonus. Here's the part the directors miss directors of Limited Company. As a director, you can receive up to six of these per year. That's £300 tax free. Think about it. Christmas gift meals. It could even be coffee with, you know, small treats. It could be thanks for surviving this year moment. So each item must be 50 pounds or less. Now don't go over 50 pounds. If you do that, it becomes fully taxable. It's classic ketchup. Now if you use it properly, this is one of the easiest ways to extract some value from your company. Tax efficiently. Staff, gifts and bonuses. That number four, you need to do it properly. If you want to give staff something bigger than £50, you absolutely can. But was a gift excess £50 or reward or rewards performance. It can be a performance bonus. HMRC is going to treat it as earnings. If you do that, that means it should go through payroll. You don't want that. Here's a smart move. Many business owners don't realize you can actually gross up the bonus. So put it all together. So if you want your staff member to receive 100 pounds in their pocket, you can pay the tax on their behalf. So they get a hundred pounds. But you are the hero. HMRC is satisfied because you grossed it up. No nasty surprises, no angry January pay slips. Okay? Now this is number five. Paying family legitimately. If your partner, teenager or adult child genuinely helps you in your business, you can pay them and it's fully legitimate. So you might have a lot of business coming in. Now I need help. But they must do real work. Pay must be reasonable as well. Don't pay them 100k from helping you pack some of your books like I've had to ship books recently. Now that wage reduces your Taxable profit for under 16s. You need to check your local council child employment rules. Usually it's just a form to fill out. Now this is one of the most underused family tax planning tools out there, right, this is number six. Now, branded clothing. I haven't got my merch yet, but yes, even Christmas jumpers can work. HMRC ordinarily will not allow clothing, but if it's a branded clothing, that's totally different. You can't claim for your clothes, but you can claim for include to their company logo because it's like workwear and that includes T shirts, hoodies, it could even be like cardigans, like art and even festive jumpers. Yeah, the logo must be permanent though it must not be detachable. If there's no logo, HMRC will say it's a personal stuff and you can't claim it. The claim will be client 7. Working from home allowance. If you work from home, your company can pay you six pounds per week tax free with no receipts required. Heating, electricity, Internet. And let's be honest, December is when those bills go up. Winter they go up the most. You can claim more if you can evidence it with receipts and all that. But most people forget to claim anything at all. It's small but it adds up every single year. So there you have it. And there are lots of these as well. These are seven Christmas tax wins. HMRC quietly hopes you forget. It's all legal, it's all practical, it's all mis deviated by hard working professionals who simply weren't out the rules. Now, if this video has helped you save money or reminded you to claim something you missed, hit the subscribe button. And if you're a medic, doctor or healthcare professional, you want to check whether you're tax efficient. Right now you can use the Tax Efficiency Scorecard. The link is in the description. And remember, look, if you don't plan your tax, HMRC will happily plan it for you and it's not in your favor. Have a merry, very bright and very tax efficient Christmas. All right then, cheers. Bye bye.

The money wise Dr. Book is now available. Click on the link below to order your copy now and start your journey to financial freedom.