The government has announced several measures this month to get the UK economy going again as the COVID-19 lockdown measures are eased. To give you a quick overview: You’ll be able to claim £1,000 for each employee who remains continuously employed through to the end of January 2021. Employees must earn above the Lower Earnings…
Your company can give gifts up to £50 in value to its employees, directors and company secretary, tax-free. In other words, you can receive a tax-free gift from your company and reduce your corporation tax bill. This is known as a trivial benefit. Watch out for the restrictions The gift can not be:- a voucher…
As an associate dentist, you will need to choose between being self-employed and forming a limited company. No tax or national insurance is deducted from your payments, so you have to arrange all of your own finances to pay the right amount of right tax. There are a number of ways you can do this,…
Your tax-free personal allowance starts to be withdrawn when your income exceeds £100,000 When your income tops £100,000 you might want to celebrate. But as soon as it does, you will be entering the 60% tax rate club. One of the highest income tax rate clubs in Europe that no dentist wants to be in.…
If you trade as a self-employed dentist you will want to know how much to save for your taxes. These two simple profit matrices show you how much to save for your tax payments if you:- Contribute to the NHS pension scheme Do not contribute to the NHS pension scheme
Setting an optimal salary for a company director each tax year is the most common form of tax planning. We always suggest setting a salary first then paying a combination of dividend, interest and rent to take money from your company. The important thing to remember is everyone’s tax affairs are unique. We recommend discussing…
Dividend allowance In addition to your tax free personal allowance, you get an annual tax free dividend allowance of £2,000. By gifting some of your company shares to your spouse, they can also have up to £2,000 of dividends tax free every tax year. Provided your spouse has no other reason to complete a tax…
The childcare voucher scheme is a tax-free payment for your childcare costs made by your employer. If you enter into an employment salary sacrifice arrangement you’ll save tax and national insurance. In addition, your employer will not have to pay their national insurance contributions on the part you sacrifice. Some employers pass on some or all of…
We know dentists love to be tax efficient, but we are amazed at how many have never heard of Relevant Life Cover. Having a Relevant Life Plan will give you peace of mind knowing your loved ones are provided for should anything happen to you. They can be used as an alternative to life assurance…
Updated 26 Aug 2021 In this guide to Associate Dentist Expenses, I will detail the costs that can be claimed as an associate dentist and some of the intricacies of the tax system. I’ll cover the differences between the expenses a limited company and self-employed associate dentists can claim. The expenses you can claim get…