Starting a Private Medical Practice? Accounting & Tax Advice for Doctors
If you are setting up a private medical practice through a limited company, you’ll need specialist accounting advice that goes beyond standard business compliance.
At Yorkshire Medical Accountants, we work with consultants, GPs, surgeons, psychiatrists, dermatologists, aesthetic practitioners and other healthcare professionals who are building successful private practices throughout Yorkshire and the UK.
Whether you have recently incorporated a company, are applying for CQC registration, or are already seeing private patients, we can provide the financial support and tax planning advice needed to help your practice grow efficiently.
Accounting Services for Doctor-Owned Limited Companies
Most private medical practices operate through a limited company structure because it can offer flexibility, tax efficiency and greater control over income.
Our services typically include:
- Annual statutory accounts preparation
- Corporation tax returns
- Companies House filings
- Director tax planning
- Management accounts
- Business growth advice
- CQC-related business support
As your practice develops, we can adapt our service to support increasing turnover, additional staff and more complex tax planning requirements.
Self-Assessment Tax Returns for Doctors
Many doctors have multiple income streams including:
- NHS employment income
- Private practice income
- Medical reporting work
- Expert witness fees
- Teaching income
- Property income
- Investment income
We prepare and submit personal self-assessment tax returns whilst ensuring all available allowances and reliefs are considered.
Director Payroll Services
Even where a private practice generates modest income initially, it is often beneficial to pay a director salary alongside dividends.
We provide:
- Director payroll processing
- HMRC submissions
- Year-end payroll reporting
- Workplace pension guidance
- Salary optimisation advice
Our aim is to ensure your remuneration strategy remains both tax-efficient and compliant.
Salary vs Dividends: What Is the Most Tax-Efficient Approach?
One of the most common questions from doctors starting private practice is how to extract profits from their company.
The answer depends on factors such as:
- NHS earnings
- Private practice income
- Pension arrangements
- Future investment plans
- Corporation tax liabilities
- Personal tax thresholds
We provide advice on:
- Director salaries
- Dividend planning
- Retaining profits within the company
- Employer pension contributions
- Tax-efficient profit extraction
Every doctor’s circumstances are different, which is why personalised advice is essential.
Bookkeeping Software for Private Medical Practices
Accurate bookkeeping is vital from day one.
We support a range of cloud accounting platforms including:
- Xero
- QuickBooks
- FreeAgent
For many doctors using Semble practice management software, the integrated Xero connection can be an excellent solution. It allows patient billing and accounting records to work together efficiently, reducing administration and improving financial visibility.
We can advise on the most suitable setup based on your practice structure and expected patient volumes.
What Business Expenses Can a Private Medical Practice Claim?
Understanding allowable business expenses is important for managing tax liabilities correctly.
Common examples may include:
- Professional indemnity insurance
- Medical subscriptions and memberships
- Practice software
- Accountancy fees
- Marketing and website costs
- Professional training and CPD
- Office equipment
- Telephone and internet costs
- Business travel
- Employer pension contributions
The correct treatment depends on individual circumstances, and we provide guidance to ensure expenses are claimed appropriately and in accordance with HMRC requirements.
Do You Provide Proactive Tax Planning?
Many accountants focus primarily on annual compliance.
At Yorkshire Medical Accountants, we believe tax planning should be an ongoing process.
Our clients benefit from advice throughout the year regarding:
- Dividend planning
- Corporation tax forecasting
- Pension contributions
- Cashflow management
- Profit extraction strategies
- Business growth planning
- Tax-efficient investments
This proactive approach helps avoid surprises and can often identify opportunities to reduce tax liabilities legally and efficiently.
How Much Does an Accountant for a Private Medical Practice Cost?
Fees vary depending on:
- Practice turnover
- Number of transactions
- Payroll requirements
- VAT registration status
- Complexity of tax affairs
- Additional advisory support required
For newly established private practices, we typically offer fixed-fee packages so costs remain predictable during the early stages of growth.
Following an initial discussion, we will provide a tailored quotation based on your circumstances and anticipated requirements.
What Information Do You Need to Provide a Quotation?
To prepare an accurate proposal, we usually require:
- Details of your limited company
- Current stage of CQC registration
- Expected turnover
- Number of directors and employees
- Existing accounting software
- Whether VAT registration is required
- Details of any NHS or other employment income
An introductory conversation is often the quickest way to establish your requirements.
How Do I Get Started?
If you are establishing a private medical practice and would like specialist accounting support, we would be happy to arrange an initial consultation.
We can discuss:
- Your business structure
- Tax planning opportunities
- Software recommendations
- Compliance requirements
- Growth plans
Our goal is to help doctors spend less time worrying about finances and more time focusing on patient care.
Speak to Yorkshire Medical Accountants
Contact our team today to arrange an introductory discussion and discover how specialist medical accounting advice can support the growth of your private practice.
