Significant changes to tax legislation relating to self employed people means that new doctors need to seriously consider the business structure they intend to establish.  Many new doctors have been incorrectly advised to automatically set up a new company to practice through, despite the fact that this structure may end up costing thousands more in tax and compliance fees.   

Rob Giffard, GiffardSim Accountants accounting and business advisor to medical practitioners, said that a new medical practitioner should be advised about the benefits, as well as the disadvantages of the traditonal way of structuring a medical practice or VMO arrangement.  The review should focus on opportunities to reduce or eliminate overheads or taxes specific to companies, as opposed to the sole practitioner model.   "The fact is that I believe many doctors are not being informed of the extra costs associated with some structures.  These costs in the past were more than likely eliminated by the tax savings associated with a particular type of structure, but these savings have more than likely  been eliminated because of recent changes to legislation".

Mr Giffard said that GiffardSim Accountants has a special interest in supporting medical practitioners and welcomes the opportunity to discuss accounting and tax planning opportunities with any potential client.  

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