Self-employed Dentists, be aware of the hidden 62% marginal tax rate that could affect your income. As your income tax allowance gets withdrawn, you may experience a steep 60% (61% in Scotland) marginal tax rate. This means that for every additional pound you earn beyond the £100,000 threshold up to £125,140, you will effectively pay…
Tax saving school fee schemes aimed at dentists with a company have been marketed by accountants and tax advisers, offering the opportunity to save on taxes while covering private school fees. These tax saving school fee schemes promise to reduce a dentist’s tax burden by over £4,000 per child annually. They involve the dentists transferring…
Dental services are exempt from VAT, but a VAT case has just gone through the courts, highlighting that dentists providing facial aesthetics need to register for VAT when their treatments do not constitute medical care. This compliance is essential to avoid penalties for dentists providing facial aesthetics. The case involved Aesthetic-doctor.com Ltd (ADCL) v HMRC…
In the must-read book Atomic Habits by James Clear, a line says, “You do not rise to the level of your goals. You fall to the level of your systems. If you want better results, then forget about setting goals. Focus on your systems instead”. This has connected with me, and I’m focusing on improving…
This week was some humble pie for me and new learning about NHS Pensions in Limited Companies. I had always known that associate dentists who performed their NHS dental services using a limited company would not be entitled to be a member of the NHS pension scheme and qualify for the pension and other benefits…
This week, I will begin winding up three companies’ tax efficiently that have served their purpose for our customers. Capital gains tax rates are lower than higher income tax rates on dividends, which means for higher rate taxpayers, there is a tax advantage to closing a company as a capital distribution to the shareholders. The…
A global launch webinar, primarily aimed at the orthodontic community, will be held next week to show off the capabilities of the latest version of Align’s product. As a dentist reading this, you will be fully aware of the game-changing potential of the intraoral scanner in patient communication. The enhanced capabilities of the Lumina (for…
This guide benefits working dentists with children who want to help a family member who isn’t working and cares for their kids to get a free state pension. Your state pension and the amount you will be paid are linked to your National Insurance contributions records. You will need at least ten years of…
We have an Associate Dentist joining us as a new customer. This follows a rather stressful HMRC investigation into five years of their previous expenses. Unfortunately for the associate, they had failed to keep accounting receipts as evidence of their associate payments, and HMRC disallowed several expenses upon which they had claimed a tax deduction.…
One of my self-employed associate dentist customers who is planning to start a family this year told me yesterday she is preparing to leave the NHS pension and form a limited company. She had assumed she would get the NHS maternity pay if she had a limited company. This was incorrect. If you leave the…