Tax treatment of doctors: hospital doctors: junior doctors on rotational contracts: training expenses
It is well established that employees are not entitled to an expenses deduction under Section 336 ITEPA 2003 for the expenses continuing professional education (CPE). The Commissioners and the Courts have traditionally held that the duties of trainee doctors, for the purpose of the expenses rule, are limited to the clinical work that they do for the NHS Trust by whom they are employed. Their training activities are not undertaken “in the performance of” those duties for the purpose of Section 336 (see EIM31650 onwards). That is so even though the training activities may be compulsory, and failure to complete them may lead to the employee losing his or her professional qualifications, and/or their job.
The Commissioners and the Courts upheld that view in a number of cases, as follows:
Parikh v Sleeman (63TC75) - a hospital doctor was refused relief for the expenses of attending training courses during periods of study leave.
Snowdon v Charnock (SpC282) - a specialist registrar was refused relief for the expenses of undergoing mandatory personal psychotherapy.
Consultant Psychiatrist v CIR (SpC557) - an NHS consultant was refused relief for the expenses of CPE necessary to maintain her professional qualification.
Decadt v CRC (TL3792) - a specialist registrar was refused relief for the expenses of taking professional examinations, even though it was a condition of his employment that he should do so.
There is, however, now the Court of Appeal judgement in the case of:
Revenue & Customs Commissioners v Dr Piu Banerjee ( EWCA Civ. 843) - a specialist registrar was entitled to relief for training costs while employed on a training contract where training was an intrinsic contractual duty of the employment. See EIM32530 onwards for further guidance.