Tax guides
Income protection for doctors is taxed differently depending on who pays. Personal policies get no tax relief but pay out tax-free; company-paid policies are usually deductible but the payouts are taxed. This guide covers the tax only. For product advice, speak to an FCA-authorised protection adviser.
Not when you pay personally: premiums for a personal policy get no tax relief, but the benefits are normally paid tax-free. If your limited company pays for an executive income protection policy, premiums are usually deductible for the company, and the benefit the company receives is taxed, then paid to you through payroll.
Fixed fees, specialist healthcare accountants, and every HMRC and NHS Pensions deadline handled.
Reviewed by Waqas Sagar ACA FCCA FMAAT, Founder of ACCOTAX, 18+ years' experience · Last reviewed: 8 October 2026 · Updated for the 2026/27 tax year
Medical.Accountants by ACCOTAX, ICAEW/ACCA-regulated chartered accountants, London, serving clients across the UK. Over 5,000 clients served.
Key takeaways
Free guide: The Doctor's Tax & NHS Pension Handbook 2026/27
Get the free guideStart with how you are paid. Different income sources can need different accounts, returns and expense checks.
| How you work | What we check | Support to explore |
|---|---|---|
| Employed or umbrella (PAYE) | Tax codes, eligible employment expenses and whether a tax return is needed. | Healthcare tax refund support |
| Genuinely self-employed | Business income and expenses, Self Assessment and MTD eligibility. | Healthcare Self Assessment service |
| Your own limited company | Company accounts, Corporation Tax, director income and off-payroll status where relevant. | Healthcare limited company accounts |
| Partnership | Practice accounts, allocated profit and each partner’s personal tax position. | Healthcare partnership accounts |
Sound familiar?
What it's costing you
General examples — your position depends on your own figures.
How we solve it
We claim back overpaid tax for up to four previous years.
We check every employment and fix wrong codes with HMRC.
Filed for you when you need one, and explained when you don't.
We explain your annual allowance position in plain English.
How we help
We check the corporation tax treatment of premiums your company pays.
If a company policy pays out, we run the payments through payroll correctly.
We compare paying for cover personally or through the company.
We confirm the tax position for company-paid relevant life cover.
What to know before you decide
NHS sick pay is taxed as normal pay. Many income protection policies start paying after a deferred period, which can be set to begin when NHS sick pay reduces. A protection adviser can match the deferred period to your contract.
Your questions answered
Not for personal policies: you get no tax relief on premiums. Premiums for an executive income protection policy paid by your limited company are usually deductible for the company.
Want us to check this for you? Get a free review →Yes. Your company can take out an executive income protection policy for you as a director or employee. Premiums are usually an allowable company expense, and the policy pays benefits to the company.
Check the official guidance · www.gov.ukHelp with this question: Limited Company Accounts & Corporation Tax for Doctors & Healthcare Professionals
Want us to check this for you? Get a free review →Benefits from a personal policy are normally tax-free. Benefits from a company policy are taxable income for the company, and what it pays to you is taxed through payroll as pay.
Want us to check this for you? Get a free review →NHS sick pay is taxed as normal salary. Income protection usually starts after a deferred period, which many doctors align with the point their sick pay reduces.
Want us to check this for you? Get a free review →Relevant life cover is a company-paid life policy for an employee or director. If the conditions are met, premiums are usually deductible for the company and are not a taxable benefit for you.
Want us to check this for you? Get a free review →A CT600 is the corporation tax return that limited companies must submit to HMRC annually. It reports your company's income, expenses, and tax liability. The filing deadline is 12 months after the end of the accounting period it covers. Medical.Accountants prepares these returns as part of our comprehensive company service.
Check the official guidance · www.gov.ukHelp with this question: Limited Company Accounts & Corporation Tax for Doctors & Healthcare Professionals
Want us to check this for you? Get a free review →For eligible companies, the small profits rate is 19% and the main rate is 25%, with marginal relief between £50,000 and £250,000. These thresholds are reduced for short accounting periods and associated companies. Some companies are excluded from the small profits rate. We calculate the liability using taxable profits and your company’s circumstances.
Check the official guidance · www.gov.ukHelp with this question: Limited Company Accounts & Corporation Tax for Doctors & Healthcare Professionals
Want us to check this for you? Get a free review →Company directors typically receive a combination of a tax-efficient salary and dividends. The dividend allowance is £500 for the tax year. The personal allowance of £12,570 is available but begins to taper away once income exceeds £100,000. We provide bespoke advice to ensure your remuneration strategy is compliant.
Check the official guidance · www.gov.ukWant us to check this for you? Get a free review →Quick quote
Three fields. No obligation. A specialist replies, not a sales team.
Packages for your working life
Self-employed income, a limited company, PAYE or a mixture: start with the support that matches how you actually work. We check your status and agree the scope and fee before starting.
For genuine sole-trader income. We prepare your business accounts and Self Assessment, review allowable expenses and explain payments on account.
Fixed fee quoted after a review
Discuss this packageFor clinicians working through their own company. Choose Essential/Compliance, Core/Complete or Growth according to your accounts, bookkeeping and payroll needs.
Company packages from £45.83 + VAT / month
Compare company packagesFor employed clinicians, partners and people with mixed income who need a return. We check whether Self Assessment is required and reconcile the relevant income, expenses and pension tax information.
Fixed fee quoted after a review
Discuss this packageEmployment status is determined by the facts, not the package you choose. PAYE, umbrella and partnership arrangements may also apply. A limited company does not override IR35 or off-payroll rules, and not every employed clinician needs a tax return.
Overpaid tax?
We review tax codes, eligible professional expenses and overpaid tax, then prepare a claim where you qualify. A refund is not guaranteed; HMRC decides the claim.
£249 + VAT
For refunds up to £5,000, our fee is £249 plus VAT. For refunds above £5,000, add 5% of only the amount above £5,000 to the £249 fee. VAT applies to the total professional fee.
Example: a £6,000 refund means £249 + £50 = £299 plus VAT.
Professional fee, excluding VAT
£249
This illustrates the fee only, not whether you qualify or how much HMRC will refund. We agree the claim scope and payment terms before work starts.
What's included
For locums, salaried GPs and dentists with a limited company
from £45.83 + VAT /month
For private practice, consultants and associate dentists
from £62.50 + VAT /month
For clinics, dental practices and growing medical teams
from £75.00 + VAT /month
Prices exclude VAT. Making Tax Digital quarterly updates available as an add-on. Compare fees
Why clinicians trust us
Chartered accountant and founder of ACCOTAX. Last reviewed October 2026.
Get my fixed-fee quoteHow it works
A 15-minute chat about your income, structure and deadlines.
We set up your records, software and HMRC agent access.
HMRC, NHS Pensions and every deadline, with reminders before each one.
Free resource
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Leave your details and we'll call you back, or book a free review straight away.
Book a free 15-min tax reviewGeneral information for the 2026/27 tax year, prepared from the official guidance linked below. It is not personalised tax or regulated financial advice. Rules and circumstances can change; confirm your position before acting.
Official sources referred to on this page: HMRC Business Income Manual; GOV.UK: Medical treatment expenses and benefits; HMRC Pensions Tax Manual.
