Doctors and dentists lead demanding professional lives, balancing patient care with the complexities of running a practice. Knowing how to claim expenses for doctors and dentists correctly can make a significant difference to your practice’s financial health. It reduces your taxable income, improves cashflow and ensures compliance with HMRC guidelines.
But which expenses can you legitimately claim and what rules should you follow for the 2025/26 tax year? Here’s our guide to help you claim expenses for doctors and dentists effectively.
Why claiming expenses matters
Claiming allowable expenses reduces your taxable profit, directly lowering your tax bill. For higher-rate taxpayers like many doctors and dentists, this can mean significant savings. According to HMRC, failure to correctly claim allowable expenses leads many professionals to overpay their taxes each year.
Additionally, improving your practice’s cashflow helps fund new equipment and training, and enhances overall service quality. The Office for National Statistics (ONS) highlights that healthcare practices in the UK face rising operational costs year on year, emphasising the importance of accurate expense claims.
Allowable expenses for doctors and dentists
As a medical or dental professional, it’s important to understand exactly what counts as an allowable expense.
- Professional fees and subscriptions: Registration with professional bodies like the General Medical Council (GMC) or the British Dental Association (BDA) are fully deductible.
- Training and development: Courses directly related to your practice, including mandatory continuing professional development (CPD), are allowable expenses. But HMRC rules state training for new specialisations isn’t deductible.
- Practice equipment and supplies: You can claim the full cost of medical and dental equipment, including diagnostic tools, surgical instruments and dental chairs, under the annual investment allowance (AIA), currently capped at £1m per tax year.
- Travel and transport: Costs for professional travel – excluding regular commuting – are deductible. This includes travel between clinics or home visits.
- Premises and utility bills: Rent, rates, utilities and practice insurance are all allowable, provided they’re solely business-related.
- Staff costs: Salaries, employer national insurance contributions (NICs) and pension contributions for your practice’s employees are deductible.
Keeping accurate records
Proper record-keeping isn’t optional – it’s a legal requirement. Accurate records make claiming expenses straightforward and reduce the risk of HMRC disputes. We recommend maintaining:
- receipts and invoices for all expenses
- detailed mileage logs for professional travel
- bank statements clearly separating business and personal expenses.
Good record-keeping can be easily achieved with digital accounting tools. At JCS, we encourage digital systems to streamline the process and reduce your administrative burden.
Common pitfalls to avoid
Mistakes in claiming expenses can lead to unwanted HMRC scrutiny. Here are common pitfalls.
- Claiming personal expenses: HMRC strictly prohibits personal expenses. Ensure a clear division between professional and personal use, particularly for vehicles and home offices.
- Inadequate evidence: HMRC demands robust evidence for expense claims. Insufficient documentation can trigger an audit.
- Misunderstanding capital allowances: Misapplying capital allowances, such as claiming full deduction on equipment outside the AIA, can lead to tax discrepancies.
Our team at JCS regularly advises medical and dental professionals on avoiding these issues, helping them stay compliant and confident in their claims.
Expenses for doctors and dentists working from home
Many practitioners have adapted to flexible working, including administrative tasks from home. HMRC allows you to claim expenses for home working if the space is used regularly and exclusively for practice administration. You can use either simplified flat-rate allowances or calculate actual expenses based on the proportion of your home used for work.
VAT considerations
Healthcare services provided by registered medical professionals are usually VAT-exempt, meaning VAT on purchases can’t generally be reclaimed. However, some practices may be partly exempt, complicating the VAT recovery process. It’s worth seeking professional advice to ensure VAT compliance and optimise claims.
Self assessment deadlines
Claiming expenses correctly also involves meeting self assessment deadlines. For the 2025/26 tax year:
- paper tax returns must be filed by midnight, 31 October 2026
- online returns are due by midnight, 31 January 2027.
Late submissions or errors can lead to penalties and interest from HMRC.
What statistics tell us
According to recent ONS data, healthcare practices spend around 15% of their annual turnover on overheads, demonstrating how effectively claiming expenses can significantly influence profitability. Moreover, HMRC audits in recent years have identified approximately 10% of healthcare practices failing to comply fully with expense claims, resulting in unnecessary penalties and stress.
How we can help
Understanding how to claim expenses can be challenging, especially alongside clinical responsibilities. At JCS, we specialise in supporting medical and dental professionals. We provide tailored advice, ensure your claims comply with HMRC rules, and handle the complexities of your tax returns.
Ultimately, claiming expenses correctly isn’t just about reducing your tax bill – it helps your practice thrive. By understanding HMRC guidelines, maintaining accurate records, and avoiding common pitfalls, you’ll improve your practice’s financial resilience.
At JCS, we’re here to simplify your expenses and keep your practice compliant. To discuss how to claim expenses for doctors and dentists and manage your finances, contact us today.
