Money Matters

Doctors’ training costs: are they tax deductible?

Doctors often wonder whether training costs are tax deductible.

HM Revenue and Customs state that a deduction for training costs incurred by an employee will only be allowed if the employee concerned was directly employed on a training contract.

The training has to be an intrinsic part of the contractual duties of the employment.

HM Revenue and Customs provide the following example:

“A trainee doctor employed as a registrar on a training contract is required, as a stated contractual duty of the employment, to attend various external training courses.

“As part of the duties of the employment there is a mandatory requirement to maintain a national training number by attending a series of training courses and events.

“Failure to complete the course and obtain the qualification will mean that he cannot proceed to the next stage of his chosen profession.

“Attendance at the training events is an intrinsic part of the employment and one of the duties of the employment. The costs of travel to the events, course fees and other associated costs met by the employee are deductible.”

But, be warned, HM Revenue and Customs will also ask the doctor to demonstrate that failure to complete the training and obtain the qualification will mean that you will not be able to continue in employment with the employer in the role that would otherwise have been available to you after qualification.

Read more here.

Authored by Jason Sharp at Doctors Tax Limited and should be used for general guidance purposes only.

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