What is CSP tax?
CSP tax refers to how tax works as a member of the Chartered Society of Physiotherapy.
This varies depending on whether you are a self-employed physiotherapist or an employed one. Otherwise, it’s no different from the tax that you pay in any other profession.
What tax does a physio pay?
As part of the UK workforce, we all have to pay two types of tax:
- Income tax – based on your earnings
- National Insurance – to entitle you to state-provided support
If you’re employed, your taxes will be sorted by your employer. The only reason that you would be asked to do a tax return is if you earn more than £100,000 per year.
You may also have to do a tax return if you incur expenses that your employer doesn’t pay you back for, but this is only if they exceed £2,500 per tax year. Anything less than £2,500 can be claimed back using a P87 form.
What is a P87?
A P87 form allows you to claim your expenses from work when you’re employed, rather than self-employed.
You do this via HMRC, giving them the below information:
- Employer’s name and address
- Your occupation
- Job title
- Industry sector
- Your National Insurance Number and PAYE reference
- Whether you’re claiming flat rate expenses
- How you want to be paid – into your bank account or by cheque?
What about self-employed CSP tax?
If you’re a self-employed physiotherapy practitioner, you have to pay the tax you owe yourself.
You do this via a tax return.
Here are some key dates to remember:
- 6th April to 5th April – the tax year, the period in which you record your income and expenses
- 5th October – deadline to register for self-employment with HMRC
- 31st January – deadline to pay your tax return
What are CSP tax expenses?
You can claim back your expenses as a self-employed physiotherapist.
Deducting your expenses means that you only pay tax on your profit, rather than your income as a whole. And this is great to help you reduce your tax bills.
Here’s a list of expenses that you might incur as a physiotherapist:
- Membership subscription fees
- Uniform
- Specialist shoes or clothes
- Equipment
- Mileage
- Travel and overnight business expenses
- Utility bills (if you work from home)
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