Dental partnership accounting and pension tax planning using the cash basis A real‑world example of how accounting method choice can prevent unnecessary pension tax charges Introduction We were recently introduced to a dental partnership by a financial adviser after the dentists became concerned that they had been hit with an unexpected tax charge on their…
Today’s Budget is one of the most anticipated in recent years. While the headlines promise “no major tax rises”, the reality is more nuanced. The government faces a £30 billion fiscal gap, and with income tax, VAT, and National Insurance rates politically off-limits, expect a raft of smaller, targeted changes that could significantly affect dental…
The Spring Statement, delivered by Chancellor Rachel Reeves, didn’t introduce new tax increases but focused on tighter HMRC enforcement, aiming to raise £2.2bn. Here’s what dentists need to know: 1. HMRC is Cracking Down on Tax Compliance Whilst we haven’t seen a massive number of HMRC enquiries into our dentist’s taxes in recent years, we…
With the tax year ending on April 5th, now is the crucial time for dental professionals to take action to maximise their tax savings and plan effectively for the new tax year. Contribute to a pension Contributing to a pension is a tax-efficient strategy as you get immediate tax relief on the contributions, For Self…
Understanding whether Company Pension Contributions are Tax Deductible for Family Members can be an excellent way for company owners to save for retirement while reducing corporation tax—but only if done correctly. A customer recently asked us whether a £60,000 and £40,000 pension contribution for himself and his wife, the directors, would be fully deductible. The…
When the income of self-employed dentists and employed dentists surpasses £100,000, they find themselves subject to a marginal tax rate of 60% and 63% in Scotland. This occurs because their tax-free personal allowance starts to diminish, resulting in a 50% increase in their tax rates. This increase can be offset by making a pension contribution.…
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 As your income tax allowance gets withdrawn, you may experience a steep 60% (61% in Scotland) marginal tax rate.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…
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 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…
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…