Clear and hassle-free advice for dentists
Clear and hassle-free advice for dentists.
Shipleys have been using their specialist knowledge in the Dental field for over 11 years.
We act for Dental clients of all sizes ranging from associates and single-handed practices to larger partnerships and corporates, as well as dental practice linked health clinics, hygienists and consultants and specialists (including orthodontists, endodontists, oral surgeons, and periodontists).
The health industry has seen a surge in growth in recent years, achieved against a back drop of challenges from fundamental reforms to the NHS. Dental practices need to be proactive in providing more of the advanced and enhanced services on top of the essential services to ensure a successful business.
- Dental Principals and Practices
- Dental Associates and Self Employed DCPs
- Tax planning services for Dentists
Dental Principals and Practices
At Shipleys Tax we understand the specific needs of dental practices and the partners involved. Wholesale reforms to the NHS mean dental practices need to re-position themselves in the new system and be able to devote maximum time to administration of patient care. That is where our team can help by providing specialist knowledge on your accounting and tax matters leaving you to concentrate on the patients.
Why do you need a specialist dental accountant?
• Knowledge of NHS general practice and the expert advice we provide can be instrumental
• Understanding how practices are funded by NHS England (formerly PCTs)
• Be familiar with the GDS/PDS provider contracts, the dental contract reforms and the impact of the NHS pension scheme
• Be up to speed on UDA values in practice and the developing primary care dental market.
• Deal competently and promptly with all taxation matters and with dentists’ superannuation.
We aim to do more than produce the annual accounts and handle the principals’ tax affairs.
Personal service – you will deal with one particular partner and their same support team and not be passed around
Timely – the annual accounts will be prepared to agreed time scales and we will visit the practice to discuss
Prompt – we will deal promptly with routine queries, telephone calls and emails and advise on bookkeeping, cash flow and monitoring partners’ drawings without making additional charges.
Tax planning – we will discuss ways to minimise your overall tax liability and spot opportunities.
We have nationwide coverage and are happy to come and visit you.
What out basic annual fee covers
• Annual accounts preparation.
• Meeting Principals to discuss draft accounts
• Partnership tax return and tax computation
• Advising on projected profits and tax liability
• Partners’ personal tax returns
• Ad hoc email and telephone queries
• Opportunities for tax planning for both business and personal affairs
We also advise on:
• Setting up a limited company for non-NHS or associate income
• Setting up a limited company and transferring the business tax efficiently
• Handling HM Revenue & Customs’ investigation into the practice
• NHS superannuation issues
• Specific tax planning strategies for reducing IHT, CGT and Stamp Duty
Dental Associates and Self Employed Dental Care Professionals (DCPs)
We have acted for Dental associates and Hygienists for many years and understand the needs of the dental profession.
What does the service include?
• How to register with HMRC
• How to set up and advising on Employed vs Self employed status and NIC implications
• Proactive advice on tax allowable business expenses, professional subscriptions
• Advice on employing a spouse
• Preparation of annual Accounts and tax returns for HMRC
• Advice on NHS superannuation issues
• Help with Student Loan deductions
• Ad hoc telephone and email advice
As well as providing accounting and income tax advice we can also advise on the following areas:
• Incorporation of your business via a limited company
• Impact on superannuation on incorporation
• Assist with raising finance from banks
• Dentists from overseas
• Inheritance tax planning
• Property tax planning
After a few years as an associate, many dentists look to acquire a practice of their own; we will handhold you through the whole process including:
• Most tax beneficial way to set up a practice of your own
• Reviewing target practice accounts and advising on matters that require further investigation or explanation
• Introducing clients to solicitors who experienced in dealing with the purchase of dental practices
• Introducing clients to banks who have specialist healthcare managers who understand the dental market and who can provide loans for practice purchases
• Advising on redundancy/staff issues on acquisition and payroll arrangements
• Advising about record keeping systems
• Advising about tax planning to ensure that the deal is done in the most tax efficient way
• Save you money – proactive services ensuring you are aware of tax savings
• Knowledge you can rely on – we have a wealth of tax expertise in the healthcare sector
• Planning – ensuring you are aware of tax liabilities and payment dates enabling you to plan your cashflow
• Peace of mind – we have many years of experience in dealing with the tax affairs of medical and hospital consultants
• Help you minimising risk of HMRC enquiry
• We have nationwide coverage and act for Dentist clients based throughout the UK.
Our basic fees are £395 + VAT for associates
Tax planning for Dentists
Tax law never stands still and goal posts are always moving. It is crucial that you have the right adviser to guide you through the maze and help reduce your tax bill through legitimate and transparent means.
Shipleys Tax has a number of specialist tax advisers with wealth of experience in the medical sector who can talk to you about the many tax saving opportunities.
We always say the best tax planning is done before a major event in the business so seek advice early on in the lifecycle of a transaction. Some areas to consider:
• Buying or Selling a dental practice – huge tax saving opportunities both personal and corporation tax
• Health clinic linked dental practices – most tax efficient trading structures
• Reduce inheritance tax on death
• Reduce stamp duty land tax on buying
• Offshore tax planning advice for certain businesses
• Provide property development strategies
• Use of EIS/SEIS and corporate venture vehicles
• Use of LLPs and corporate partnerships
• Asset protection and preservation of wealth
• Estate planning and succession
Latest news & blogs…
Recently , the IT contracting market has faced upheaval due to the upcoming changes in off-payroll workers. From 6 April 2020, the off-payroll working rules that apply where the end client is a public sector organisation are being extended to the private sector.
The amended rules will apply where services are provided via an intermediary, such as a personal service company, to an end client which is a medium or large private sector organisation. The rules bite if, ignoring the personal service company, the worker would be classed as an employee of the end client. Prior to 6 April 2020, the personal service company had to operate the IR35 rules and work out the deemed payment. However, from 6 April 2020, responsibility for working out whether the rules apply will shift to the end client and, where they do, the fee payer must deduct tax and National Insurance from payments made to the worker’s personal service company.
Where the end client is a small private sector organisation, the existing IR 35 rules apply. A private sector organisation is not small if at least two of the following apply:
• turnover of more than £10.2 million;
• balance sheet total of more than £5.1 million;
• more than 50 employees.
To prepare for the changes, HMRC recommend that medium and large private sector companies should:
• look at their current workforce (including those engaged through agencies and intermediaries) to identify those individuals who are supplying their services through personal service companies;
• determine whether the off-payroll rules will apply for any contracts that extend beyond 6 April 2020 (HMRC’s Check Employment Status for Tax (CEST) tool can be used to determine a worker’s status);
• start talking to contractors about whether the off-payroll rules apply to their role; and
• put processes in place to determine if the off-payroll working rules will apply to future engagements. These may include assigning responsibility for making a determination and determining how payments will be made to contractors who fall within the off-payroll working rules.
Workers affected by the changes should also consider whether it is worth remaining ‘off-payroll’.
If you are medium or large private sector organisation engaging workers who provide their services through an intermediary, such as a personal service company, or if you are a worker providing services via an intermediary, speak to us to understand what the changes to the off-payroll working rules mean for you.
Class 1A National Insurance contributions are employer-only contributions charged on most taxable benefits in kind (cars, gifts, vouchers etc).
From 6 April 2020 the Class 1A charge is extended such that from that date it will apply to taxable termination payments in excess of the £30,000 tax-free limit and to sporting testimonial payments in excess of the £100,000 lifetime limit. Currently, such payments are taxable but notliable to National Insurance.
The new Class 1A charge on termination payments will apply to the extent that the termination payment exceeds the £30,000 tax-free limit. The normal Class 1A percentage of 13.8% will apply. However, unlike Class 1A National Insurance contributions on benefits in kind, any liability on termination payments will be notified to HMRC via real time information (RTI) and paid with PAYE tax and Class 1 National Insurance contributions. Termination payments in excess of the £30,000 threshold will remain free of employee’s National Insurance contributions.
As with the new Class 1A charge on taxable termination payments, the liability will be reported and paid via the PAYE/RTI process, rather than through the P11D(b) process.
Non-contractual, non-customary sporting testimonials are taxable to the extent that they exceed a £100,000 lifetime tax-free allowance. From 6 April 2020, Class 1A National Insurance contributions will also be payable to the extent the lifetime allowance is exceeded. The Class 1A charge will fall on the sporting testimonial committee and it will be the responsibility of the sporting testimonial committee to report and pay the Class 1A liability to HMRC.
Speak to your professional adviser to understand how the timing of a termination payments will affect whether any employer-only National Insurance contributions are due.
The deadline for filing the 2018/19 self-assessment return online is 31 January 2020. Where a notice to file a return was issued after 31 October 2019, a later deadline of three months from the date of issue of the notice to file applies.
An earlier date of 30 December 2019 applies to taxpayers who have a liability of £3,000 or less which they would like to pay via an adjustment to their tax code.
A late filing penalty is charged if the return is filed late, even if it is only late by one day and regardless of whether any tax is due.
Speak to us to ensure that you understand what information you need to provide by when to ensure that the filing deadline is not missed.
Any tax that is unpaid for 2018/19 must be paid by 31 January 2020. The first payment on account for the 2019/20 tax year is due by the same date. Payments on account must be made where the previous year’s liability was £1,000 or more unless 80% of your tax liability is deducted at source, such as under PAYE. Each payment on account is 50% of the previous tax year’s tax and Class 4 National Insurance liability. The second payment on account for 2019/20 must be paid by 31 July 2020.
If you would like to us to check what needs to be paid by when speak to us.