Medical Council and Professional Indemntiy Insurance tax relief

GusherING

Hello

My wife is a doctor and has heard from some of her medical colleagues that it may be possible for her to seek income tax relief on (i) her annual Medical Council membership fee and (ii) her annual Medical Protection Society premium (which is a form of professional indemnity insurance). Neither of these fees are paid for her by the HSE, her employer.

I see from the Revenue Manual that an annual fee to a body like the Medical Council is likely to be considered "wholly, exclusively and necessarily" required in the course of her employment and therefore qualifies for a tax relief. She cannot lawfully work as a doctor unless she keeps up her Medical Council membership so it is absolutely essential to her employment and seems like a good item to seek tax relief on. However, I also note that doctors are eligible for "flat rate expenses" and I'm unsure if this flat rate expense relief effectively cancels out the ability to claim tax relief on her Medical Council fees.

Secondly, while her Medical Protection Society premium is definitely a work expense, it is somewhat different to the Medical Council subscription as she can still practice medicine here without taking it out. The main advantage of having it is that it minimises her risk of personal liability in any medical negligence litigation. Prudently, she (and most other doctors) pay for it in case the HSE hospital indemnity does not cover her for some reason. Is this a legit expense also even though it is a "nice to have" rather than a "need to have"?

Finally, she is registered for ROS but we cannot seem to access her previous years Form 11's. I presume we need to raise a query with Revenue to ask for these expenses to be claimed in the previous 4 years if permissable in the first place.

Thanks for any replies in advance.

CIARAN_BOYLE

Doctors receive a special tax credit for flat rate expenses in employment that is supposed to cover this.

You would need a significant argument if you wanted to make an additonal claim on top of that.

Wesser

Flat rate expenses covers med council registration.

Is you are emoyer by the HSE you are covered by the clinicasl indemnity scheme so therefore additional MPS is not necessary and therefore not available.

ants09

As per revenue website.
"Flat rate expenses are the cost of equipment that you need for work, if you are in employment. This equipment may include tools, uniforms and stationery."

Flat rate expenses don't cover membership cover to professional bodies.

Wesser

It may not cover it... but I'm telling you 100 % you will not get this money ( IMC fee)back.

wally1990

The flat rate expense is 695 increase in the rate band and an additional 139 credit which is 20℅ of the rate band which is also intended to cover IMC so that's 278 back in real money for being in a paye position

That is very good and some relief on her subscription

In terms of any other subscriptions

Where the employer pays the fess which is mandatory by law or by the employment in order to perform the role then no BIK arises but this depends on the employer (HSE) paying her fees

So in summary

I would doubt HSE will pay anything towards her subscriptions

So the best option is to apply for the flat rate expense which is worth 278 cash back based on the increase in the rand band and additional credit

That is what she will get

Better than nothing I suppose

A simple phone call to the paye dept of the revenue will ensure the flat rate expenses is applied

She will see the impact on her take own pay when her wages come through each week,month etc

GusherING

Wesser wrote: »

Flat rate expenses covers med council registration.

Is you are emoyer by the HSE you are covered by the clinicasl indemnity scheme so therefore additional MPS is not necessary and therefore not available.

Most HSE employed hospital doctors still purchase MPS out of concern that if the HSE decided to disapply the state indemnity scheme they would be left personally exposed because the hospital has covered itself at the expense of the individual doctor. This has been known to happen.

Wesser

For sure! But you still cant claim back tax on it