Being a trainee comes with some expensive outgoings. Below is a list of ways to minimise expenses, make savings, understand pensions and income protection, as well as bursaries and hardship funds available.
This article will cover:
1. Understanding your pay slip
Read this article:
https://www.boa.ac.uk/resource/understanding-your-payslip.html
A brilliant summary by the BOA.
2. Tax Rebate
You can claim the tax back on GMC, BMA, BOA, MDU, MPS, and RCS membership fees annually as well as FRCS fee. As well as claiming for this year, you can back-date for the previous 5 years. Unfortunately, courses and additional degrees cannot be claimed. As part of that process, you can get a new Tax code that allows for extra earnings before you pay tax going forward .
As of 14th October 2024 you must send receipts with your claim.
Read this article:
https://www.medicsmoney.co.uk/free-guide/
A great step by step guide to make it easy.
3. Locum work & Tax code issues
If you undertake the occasional locum, trusts can sometimes open up a new assignment and HMRC code for you, which HMRC then recognises as a “second form of employment”. They will usually then automatically calculate an additional tax code based on you earning that shift’s amount on a monthly basis (i.e. if your shift earnt you £900, they would calculate that you would be expected to earn £10,800) - usually “BR”. They would then automatically alter your non-taxable personal allowance on your main employment (i.e. 1250L turns to 570L) in order to gain back this tax over the remainder of the tax year. This can lead to a scary brown envelope through the post saying you now owe them thousands in additional tax which they will take by reducing your personal allowance.
This is easily resolvable:
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Log onto the HMRC website and go onto the PAYE Income tax summary:
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Identify the relevant locum employment and click “view or update my employment details
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Under estimated taxable income, click update my estimated taxable income
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Type in the true amount you think you will earn in locum shifts over the taxable year (April to April).
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Click confirm - your codes will update over the next 48hrs and you will be sent a new letter to confirm this.
If you have any further issues, call HMRC.
4. Perks of the job – what discounts can I get?
Blue Light Card is £4.99 for 2 years and entitles you to thousands of exclusive discounts for health workers
https://www.bluelightcard.co.uk
Ode Cashback Card is only available to healthcare workers and gives you varying amounts of cashback at common retailers
https://healthservicediscounts.com/nhs-cashback-card
BOA discounts on financial advisors, indemnity, health insurance, income protection, OrthOracle, and Wisepress bookshop
https://www.boa.ac.uk/membership/membership-benefits.html
5. Moving house
If you move house during training, you may be entitled to up to £10,000 assistance with moving fees (including purchase costs and removal costs).
Getting a Mortgage broker who understands doctors can be tricky – Medics Money have created a list of trusted advisors/brokers who are familiar with doctors’ pay:
https://www.medicsmoney.co.uk/medical-mortgage-advisor/
6. Course/PGCert/Fellowship bursaries/Awards
RCSEng Margaret Witt Scholarship:
An award to attend an RCSEng Course. Up to £1000. Can be used towards nominated RCS courses.
BOA Travelling Fellowship:
Every year, the BOA invites applications for funding to undertake a fellowship either within the UK or overseas, at one or more centres of excellence to gain knowledge and experience within trauma and orthopaedic surgery (you can apply for £1,500, £2,500, £5,000, and £15,000).
https://www.boa.ac.uk/learning-and-events/fellowships-awards/travelling-fellowships.html
RCSEng Ronald Raven Barber’s Award :
The award is intended to assist surgeons who are proposing to go abroad to learn a new surgical technique or procedure. Up to £2500
RCSEng Cutler’s Surgical Fellowship:
Allows RCS members to undertake a period of time overseas to learn a surgical technique, procedure or treatment. Up to £10,000 to cover costs related to travel and accommodation.
WOC Travelling Fellowship
Orthopaedic trainees who are planning to spend a period of time working in the developing world are invited to apply. Each award is for £1500 towards the cost of travel,
accommodation and living expenses.
7. Coping with financial stressors
Anyone at any time can find themselves struggling financially and doctors are no exception.
Listen to these podcasts:
How to stop finances controlling your career: https://youarenotafrog.com/episodes/142/
Freeing yourself from the money trap: https://youarenotafrog.com/episodes/50/
8. Hardship funds
BOA Benevolent Fund
A benevolent fund for members or their dependants in times of need: https://www.boa.ac.uk/membership/supporting-members-in-need.html
Royal Medical Benevolent Fund
The RMBF offers financial assistance to doctors in times of need. They also offer financial advice and telephone befriending for those who are feeling isolated and require support.
https://rmbf.org/get-help/help-for-doctors/financial-help-for-doctors-and-their-families/
9. Pensions, Income Protection & Life Insurance
Medics Money
When considering all of the below, you should always consider the advice of an Independent Financial Advisor who specialises in doctors and can give you bespoke advice. Medics Money highlights all local IFAs where you can often get a free consultation: https://www.medicsmoney.co.uk/find-a-specialist-medical-ifa/
This fantastic website and series of podcasts is run by two doctors covering all the complex inancial issues you may face: https://www.medicsmoney.co.uk
Income protection
Income protection insurance (sometimes known as permanent health insurance) is a long-term insurance policy designed to help you if you cannot work because you’re ill or injured. Find out more about it and whether you may wish to consider it here: https://www.medicsmoney.co.uk/income-protection-for-doctors/
Life Insurance
If you’re not sure what you’re entitled to if you were to become unwell and unable to work, or worse what your family would be entitled to in the event of your death, listen to this useful podcast on what life insurance is and whether doctors actually need it alongside our NHS income protection and pension: https://www.medicsmoney.co.uk/ep-113-do-doctors-need-life-insurance/
Pensions
Follow Dr Tony Goldstone, a radiologist and National Clinical Advisor on pay and pensions (BMA) who explains pensions issues excellently on Twitter: @goldstone_tony.
10. Edits / updates / improvements?
These support / welfare articles require constant updating to reflect the changing world of the modern Orthopaedic trainee.
If you have any edits / updates / improvements for this article please email them to:
Thank you for your support.
Original article by Robyn Brown.
Adapted for BOTA by Florence Shekleton.
Finances