ABSTRACT
All doctors thinking of setting up in private practice are advised to seek advice as to the best way in which to manage their accounts from the outset and to obtain the services of an accountant to manage their tax affairs. Taxable income for these purposes can be described as the excess of income over deductible expenses and capital allowances during the requisite tax year. Expenditure on medical supplies is allowable as a deduction in the accounting period in which it is incurred, but the tax authorities may expect any stock in hand at the beginning and end of the period to be taken into account. Bank interest on overdrafts or loans entirely for practice purposes including purchase of premises together with hire purchase commitments can also be allowed against tax. A certain amount of tax relief is available in respect of capital expenditure in the form of capital allowances.
