Dr. Andy Egwim explains how UK doctors' side income from consulting, coaching, or e-commerce can trigger a 60% marginal tax rate. He uses a case study of a NHS consultant juggling multiple side gigs to show how unstructured earnings spiral into massive tax bills. The fix: choose a tax-efficient structure like a limited company before you earn the money, not after.
So your additional income could be creating additional tax problems for you, and many doctors don't even notice this until it's already cost them thousands of pounds, or when they receive a letter from HMRC. Maybe you have a side hustle, or you've got like some sort of, you know, business you're building by the side, or even you're just looking in. It's not a reason to stop building extra income, but it's a reason to think about the structure of your income before it arrives. If you're new here, I'm Dr. Andy Egwim. I'm the founder of Moneywise Doctor, and I've taught over 4,400 doctors tax-efficient investing and The same pattern keeps showing up, and a lot of these are not just the salaried doctors anymore. Some are founders, some are coaches, some are locums, some are expert witnesses, some are health tech advisors advising startups, but they haven't structured their income properly, and a lot of time they just operate as if it's just their salaried income. A good example is Dr. Joe. So she was a brilliant NHS consultant who advises a health tech company and runs a small coaching practice. Now, the income she was getting was landing on top of her NHS salary. And it was pulling her further into the 60% tax trap. Now, that is totally avoidable. Now, this is not financial advice and every situation is different. Now, that doesn't mean everyone needs to have a limited company. It just means it's a question worth asking, not ignoring. Before you set up a business, before you start thinking about the extra income, think about the tax structure, how you set it up. Even your locum, can you do it through a limited company? Now, your e-commerce business, your side hustle. Now, quick question: if you earn income outside your main role, what's the one tax question you want answered? If you have any questions around that, I'm more than happy to answer that. I've had limited companies in real estate, I have limited companies working as a doctor, and also for my current business. And if you like content like this, just follow for more.
