Declaring Untaxed Income

It’s likely as a doctor that you will earn additional income outside of what the trust pays into your bank account every month. It’s important that you declare this untaxed income to HMRC and pay the appropriate taxes on it!

Locum and bank payments are easy. Quite often, these are also paid into your bank account and income tax is likely paid at this time – known as PAYE.

Things get more tricky when other incomes are involved. You may earn cash payments and tips from side-jobs like tutoring, and working in bars and restaurants. In hospital, you might collect cash for filling out cremation forms and medical certificates.

It’s easy to forget that tax needs to be paid on this income as well, and it’s often difficult to know how to go about declaring that income.

Earning less than £2,500 if not self-employed

If you’ve earned less than £2,500 in untaxed income through tips, commissions or cash payment for services (like medical forms and certificates), you can declare this either through the Income Tax Helpline or through your HMRC online personal tax account.

Earning less than £1,000 if self-employed

If you earned less than £1,000 through self-employment, you don’t need to declare anything as this would be within your trading allowance.

Earning over £2,500, or over £1,000 if self-employed

If you’ve earned over £2,500 in untaxed income and need to declare it (the threshold is lower in self-employment at £1,000), you will need to complete a Self Assessment tax return.

Please bear in mind the information provided above doesn’t represent official financial advice. It’s just guidance to help you make independent informed decisions!

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