Accountants Guide for Veterinary and Vet business
Today, many professional services are outsourced, we are all so busy that we focus on our own area of expertise and find it impossible to make time for day-to-day financials. So it makes perfect sense as a vet or veterinary nurse to use a specialized firm of accountants to handle business finances, insurance, tax, and all other money-related things. This leaves you totally free to restore the health of our pets and manage other professional challenges.Get a Quote Now
When Planning a Veterinary Practice
The structure of a vet practice is complicated, so it is important to plan it correctly from the beginning to make the most of your deductions. Involve your vet accountant from the start and they will explain the best structure to you. You can choose from a Limited company, sole trader or a partnership.
Meals and Travel Claims
- When you work back often at night, or on weekends you will be paid an allowance by your employer for meals. Although you can claim meals without receipts, if you show a calculation, it is better to keep the receipts. In fact, keep all work-related receipts and then hand them to the accountants and let them work it out.
- Accommodation and travel to nonlocal conferences are also claimed, as is travel between two different jobs.
- Another claim is transport usage, including driving your own car for work, tolls, taxis and all public transport.
- Home visits to clients’ animals.
- When using your own vehicle, always use a mileage sheet that you keep in your car for work-related travel, then at the end of the year, you can submit the form to the accountants to calculate reimbursement.
Often a uniform is required for work in a veterinary practice, and you may wear ‘scrubs’ or a white coat! Uniforms are expensive, so if you are required
to wear one as part of a team, by company policy, this will be another tax claim at the end of the year.
A work uniform may have a logo or an identifying emblem on it and is something that can’t be worn away from work.
Uniform Claims Include
- PPE (personal protective equipment). this may include gloves, face shield aprons, and boots.
- Laundry dry cleaning and repairs to your uniform.
- UV skin protection, sunglasses, and a hat if working outdoors.
Training for the Workplace
You will be required to attend work-related training, and to pay for it. You may be the office WH&S (work health and safety), representative and this requires annual retraining with additional modules, often LMS online from home. Any books purchased related to training can also be claimed.
What is not Covered
You cannot claim HECS help fees.
But if you are doing an ongoing University or TAFE work-related course, you can claim the fees for that course, also the books and stationery.
Tools and Equipment in the Workplace
Buying and repairing equipment used at work, like specialized surgical equipment, computers, and phones electronic diary.
Other Expenses related to Work
Any professional membership
Insurances, all professions are required to be fully insured, and to have certain practicing certificates that are renewed annually. These expenses can also be claimed, says you may also be able to claim a deduction for reporting, plus gifts and donations.
Personal superannuation. If you have concerns consult your accountant, as it will be better to hand all this over to him/her.
Telephone and Internet Services
When you are making phone calls from home or your personal mobile keep a diary, for a month and then the accountant can aggregate the figures throughout the year.
You can only claim a proportion of monthly fees that relate to your work perhaps including email and training (LMS).
There are other deductions that can be claimed by all employees, and your accountant will want to claim some of these as well.
- If you are donating regularly to a charity just give an amount and get a receipt. Don’t buy raffle tickets, as if you receive something in return it negates the deduction.
- Deduct bank fees on investment accounts.
- You probably have income protection insurance and accident insurance. Your accountant can deduct this insurance or a part of it.
- Keep all receipts that may be deductible, and when you have a meeting with the accountant you can ask them.
Last year in the UK and many other countries there were some interesting changes to taxation rates. Amongst the changes were.
- A married allowance for transfer for basic rate payers
- Changes to Mileage rates.
- Changes to business deductions.
- Corporation tax rise coming in 2023
This type of income relief was bought in to stimulate the economy during the Covid shutdown, and to a larger extent, it seems to have worked.
This was combined with general tax cuts for the public, that were given to all working people.
Advantages of using a GM Professional accountants.
- We will have a better understanding of your structure and finances.
- We can monitor the performance of your vet clinic and suggest changes.
- Good advisory services for you and your staff.
- Enforces certain standards
Because everyone in your Vet practice is so busy, there is never enough time to spend monitoring your finances. In fact, they are much better monitored by your specialist accountant who brings a financial perspective to everything he does. This will free you up to do your real work, and if you become bogged down in financial administrative stuff you will lose a day a week, and that is a waste of professional time for you and your team.