Accountancy & Tax Services for Nurses: Everything You Need to Know - ESDG Accountancy

Accountancy & Tax Services for Nurses: Everything You Need to Know

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Ed, Chartered Accountant

As a nurse, you’re dedicated to providing exceptional care for your patients. But, when it comes to managing your own finances, you might find yourself in unfamiliar territory. In this article, we’ll explore accountancy and tax services for nurses, helping you take control of your financial health and focus on what matters most – your patients.

Why Nurses Need Professional Accountancy Services

Operating as a nurse through a limited company is almost always more tax-efficient than working with an agency or via umbrella. Limited Companies allow you flexibility in the money you withdraw from the company, and allow you to take it via a blend of both salary and dividends.

Nurses often juggle multiple contracts, variable income, & unique tax circumstances. This can make managing your finances and staying compliant with tax regulations a challenge.

Although the earning opportunities are often far greater working as a nurse through a Limited company, it does come with an increased administration burden in the form of accounting and tax returns – which we are here to handle for you!

Here’s why accountancy & tax services for nurses operating via Limited companies are crucial:

    • Tax planning: Maximising your income while minimising your tax liability is key to financial success. A skilled accountant can help you navigate the complexities of tax regulations and ensure you’re making the most of available tax relief opportunities and receiving the optimum salary.
    • Compliance: Ensuring you’re meeting all the necessary tax and accounting requirements is essential for avoiding costly fines and penalties. A professional accountant can ensure your records are accurate and up to date, allowing you to focus on your nursing career. A nurse contracting through a Limited Company will need to deliver year end statutory accounts and a corporation tax return, as well as filing an annual confirmation statement with companies house. Non adherence to these can result in penalties or your company being struck off.
    • Claiming allowable expenses: Nurses can claim a variety of tax-deductible expenses, such as travel, uniforms, and professional development costs. Your accountant can help you identify all the allowable expenses, ensuring you don’t miss out on any tax-saving opportunities.n

Choosing the Right Accountant

Selecting the right accountant for your needs is essential. Here are a few tips for finding the perfect fit:

  • Experience with nurses: Choose an accountant with experience working with nurses, as they’ll understand the unique challenges you face and offer tailored advice.
  • Reputation: Look for an accountant with a strong reputation and positive reviews from clients.

  • Communication: Find an accountant who communicates clearly and is responsive to your needs.

FAQ’s

Q: Can I claim travel expenses as a nurse?
A: Yes, you can usually claim travel expenses related to your contracting nursing duties, such as travel between different work locations, as long as the travel is necessary for your work.

Q: What are the benefits of operating as a limited company for a nurse?
A: Operating as a limited company offers several benefits, including tax efficiency, limited liability, a professional image, and the flexibility to work according to your preferred schedule.

Q: How do I set up a limited company as a nurse?
A: To set up a limited company, you need to register your company with Companies House, choose a unique company name, appoint directors, issue shares and register for the necessary taxes. You may wish to first consult an accountant such as ourselves to guide you through this process at an affordable cost.

Q: How do I pay myself through my limited company?
A: As a nurse operating through a limited company, you can pay yourself a salary and dividends. Paying yourself a small salary and taking the rest of your income as dividends can be a tax-efficient way to extract funds from your company.

Q: How do I manage taxes for my limited company as a nurse?
A: As a nurse operating through a limited company, you are responsible for corporation tax, VAT (if applicable), and personal taxes on the income you receive from your company. An accountant can help you manage your taxes, ensure compliance, and provide tax-saving advice.

Q: Can I claim expenses through my limited company as a nurse?
A: Yes, you can claim allowable business expenses through your limited company, which can reduce your overall tax liability. Examples of allowable expenses include travel costs, uniforms, professional development fees, and equipment necessary for your work.

Q: How does IR35 legislation affect nurses operating through a limited company?
A: IR35 legislation aims to prevent tax avoidance by individuals who work through their limited companies but are essentially employees. As a nurse operating through a limited company, you need to ensure your contracts and working practices fall outside the scope of IR35 to avoid potential penalties. It’s advisable to consult an accountant or legal expert for guidance on IR35 compliance.

Q: Do I need professional indemnity insurance as a nurse operating through a limited company?
A: While it’s not a legal requirement, having professional indemnity insurance is highly recommended for nurses operating through a limited company and will likely be a requirement of your contract. This insurance can protect you against claims of negligence or malpractice, providing financial security and peace of mind.

About the author

Ed is qualified Chartered Accountant and founded ESDG Accountancy in 2020. He has gained extensive experience in various sectors, working with business owners, international groups, & private equity investors.