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Accountants for Doctors in London
If you are a doctor, GP, consultant or locum in London, you need an accountant who understands NHS pension rules, locum income and private practice tax, not a generalist. GM Professional Accountants provides specialist accounting for doctors across London and Essex, covering self assessment, limited company accounts and NHS pension planning under one fixed monthly fee.
What are accountants for doctors? Accountants for doctors are specialist advisers who manage self assessment, limited company accounts, VAT and NHS pension annual allowance calculations for GPs, locums, consultants and private practitioners, ensuring compliance with HMRC while reducing avoidable tax. |
Key Takeaways
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Why Doctors Choose Us
Specialist Accountants Built Around Your Medical Career
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What tax challenges do doctors face in London?
Doctors in London rarely have one income stream. Many combine an NHS salary with locum shifts, private clinic work and, in some cases, a limited company set up for consultancy or teaching. Each income type is taxed differently, and HMRC expects all of it declared correctly and on time.
The most common issues we see among London-based doctors are NHS pension annual allowance charges, incorrect expense claims on professional subscriptions, confusion over IR35 status for locum and agency work, and late or incomplete self assessment returns. According to HMRC guidance, income tax and National Insurance thresholds are reviewed annually, so a plan that worked last year may already be out of date.
Junior doctors moving between hospital rotations often overlook that relocation and travel costs between temporary placements can sometimes be claimed, while senior consultants running private clinics alongside NHS work frequently underestimate the corporation tax and dividend planning needed once private income grows. Left unmanaged, these gaps tend to surface only when HMRC opens a compliance check, by which point penalties and interest have already accrued.
Should a doctor operate as a sole trader, limited company or partnership?
The right structure depends on your total income, contract type and long-term plans. Most NHS-employed doctors doing occasional locum work operate as sole traders through self assessment. Consultants running a substantial private practice, or those with consulting and teaching income on top of clinical work, often benefit from a limited company once profits comfortably exceed NHS salary.
| Factor | Sole Trader | Limited Company |
| Setup cost | Minimal, registration with HMRC only | Companies House incorporation required |
| Tax treatment | Income tax and Class 2/4 NIC on all profit | Corporation tax on profit, salary and dividends drawn separately |
| Best suited to | Occasional locum income alongside NHS salary | Consultants with substantial private or consultancy income |
| Admin burden | One annual self assessment return | Annual accounts, corporation tax return and payroll |
How does GM Professional Accountants support NHS pension and locum doctors?
We calculate your pension input amount each year, advise on Scheme Pays elections, and check whether the tapered annual allowance applies to higher earners. For locum and agency doctors, we review IR35 status on each contract, reconcile agency income against payslips, and make sure allowable expenses such as travel between sites and professional indemnity cover are correctly claimed.
If your work sits closer to general healthcare consulting or practice management, our Healthcare Accountants service and Consulting Services for Healthcare Professionals and Practices cover practice-level advisory work alongside your personal tax position.
We also support doctors setting up or expanding a private practice, from choosing between a limited company and partnership structure to registering for VAT where non-medical services apply. Our team liaises directly with HMRC on your behalf where enquiries arise, so you are not left drafting responses between clinic sessions.
What expenses can doctors claim to reduce tax?
Commonly allowable expenses for doctors and locums include the following.
| 1 | GMC registration, BMA subscriptions and royal college fees |
| 2 | Medical indemnity insurance through MDU or MPS |
| 3 | Mileage between hospital sites and locum placements |
| 4 | Study courses, exam fees and required medical equipment |
What HMRC changes affect doctors in 2026 and 2027?
Making Tax Digital for Income Tax applies from April 2026 to self employed doctors and locums with qualifying income above £50,000, extending to those above £30,000 from April 2027. This means quarterly digital updates to HMRC rather than one annual return, so records need to move onto compatible software well ahead of the deadline. Full details are published on the official GOV.UK Making Tax Digital page.
Separately, the NHS Pension Scheme continues to review annual allowance thresholds each tax year, and consultants close to the tapered allowance limit should review their pension input statement as soon as it arrives from NHS Pensions rather than waiting until the self assessment deadline. Getting ahead of these figures gives far more scope to plan around a Scheme Pays election if a charge is likely.
Do you support doctors outside central London?
Yes. Alongside our London office on Old Street, we support doctors based near Ilford and throughout Essex, as well as consultants working across multiple NHS trusts and private clinics in Greater London. GM Professional Accountants serves clients across London and Essex, with secure online onboarding for doctors who cannot easily attend an office visit between shifts.
Because shift patterns rarely fit a standard nine to five, most of our doctor clients manage their accounts entirely online, uploading payslips and receipts through a secure portal and speaking to their accountant by phone or video call when needed. Paper records and physical meetings are never required, though our Old Street office remains open for anyone who prefers a face to face conversation.
Who else do you support in the medical sector?
Alongside GPs, hospital consultants and locum doctors, we act for dental associates, physiotherapists, pharmacists and nurses working through their own limited companies or as sole traders. Many of these clients face the same core issues as doctors: variable income across multiple sites, professional body subscriptions to track, and pension arrangements that differ from a standard workplace scheme. Treating each client as a specific case rather than applying a generic accounting template is what keeps returns accurate and tax bills as low as the law allows.
Frequently Asked Questions
| Do I need a specialist accountant as a doctor? |
| Yes. Doctors face NHS pension annual allowance rules, locum IR35 questions and mixed income sources that generalist accountants often miss, which can lead to overpaid tax or HMRC penalties. |
| Can you help with NHS pension annual allowance charges? |
| Yes. We calculate your pension input amount, advise on Scheme Pays elections, and handle tapered annual allowance calculations for higher earning consultants. |
| Should I set up a limited company for locum work? |
| It depends on income level and IR35 status on your contracts. We assess your specific situation during a free consultation and recommend the most tax-efficient structure. |
| What is the Self Assessment deadline for doctors? |
| The online filing and payment deadline for the 2025/26 tax year is 31 January 2027. Missing this triggers an automatic £100 HMRC penalty even if no tax is owed. |
| Do you support dentists and consultants as well as GPs? |
| Yes. We work with GPs, hospital consultants, locum doctors, dentists and private practitioners across London and Essex under the same fixed-fee approach. |
| How much does an accountant for doctors cost? |
| Fees depend on whether you operate as a sole trader or limited company and the services required. Book a free consultation for a tailored fixed-fee quote. |
Written by Sharaz Zaman, Founder of GM Professional Accountants, AAT Member, London accountant since 2012. Updated in July 2026.
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Disclaimer: This content is for general guidance only and does not constitute financial or tax advice. Tax rules change and how they apply depends on your individual circumstances. Please speak to a qualified accountant before acting on anything here.
