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…
In the Summer Budget 2015, the Chancellor announced changes to the pensions annual allowance that are likely to have an effect on NHS Pension Scheme members.
Measures to restrict pensions tax relief will be introduced from 6 April 2016 with the introduction of a tapered reduction of the annual allowance for individuals with income over £150,000. The key points that you should be aware of include:
- The provisions reduce the annual allowance by £1 for every £2 that an individual’s adjusted net income exceeds £150,000, up to a maximum reduction of £30,000, resulting in only £10,000 of pensions annual allowance at income levels of £210,000 or above.
- Further restrictions can apply subject to timing of the drawing of multiple pension funds.
- As the NHS Pension Schemes are defined benefit schemes, individuals have to take into account the increased value of their pension over a period of time and not the superannuation paid into the NHS Pension Scheme. Doctors with relatively modest earnings may be caught under the new regime as the levels of income attributed to the calculations include amounts after employee pension contributions, the growth in the pension scheme, and all other income including investment income.
- Doctors in both the 1995/2008 Scheme and the new 2015 Scheme will have even further complexities to their calculation than previously and it is important the pensions annual allowance position continues to be reviewed on an annual basis.
- The use of estimated figures may be needed in order to ensure that individuals are made aware of any impending tax liabilities.
Threshold income – this is all earned and unearned income on which income tax is charged. It is at this point that relief for employees’ contributions is given. If the threshold income is more than £110,000 (ie £150,000 less the maximum annual allowance of £40,000), a second calculation will be required, adjusted income.
Adjusted income – this is threshold income plus adjustments for occupational personal pensions and includes the actual pension input amount for the year less any member contributions paid in the tax year.
The inclusion of a pension charge in the tax liability also 125,000 increases the taxpayer’s payments on account in the following tax year, although there is an option to request that the pension scheme pays the tax, subject to certain limits, conditions and deadline dates for the elections needed, (31 July 125,000 following the tax return deadline submission date).
This change in legislation will have a impact on large numbers of NHS Pension Scheme members. As a result, income tax planning is more important than ever. Consideration of the effects of your personal circumstances is necessary to ensure you plan accordingly.
Key tax issues for businesses to consider
The decision has been made. The aftermath has created panic and hysteria both politically and economically. The fall-out from Brexit will take some time to play itself out, however, what should businesses consider in these spectacularly uncertain times?
Short term, the vote for Brexit will have little immediate impact beyond increased volatility in the currency and stock markets given that an emergency Budget has been ruled out. The new PM Theresa May may well look to bolster the UK’s attraction as a business location as one of her first duties.
Longer term, the effects on some sectors will be more fundamental and unlikely to make it easier to do business within the EU. Clearly this will depend on the terms the UK can agree for Brexit, something which may not become clear for some time – possibly years. There may also be significant impacts on businesses with little direct EU trade.
In the meantime, uncertainty over the UK’s relationship with the EU will continue for months or years creating a drag on the economy as businesses and consumers take a wait and see approach to investments and major purchases.
As with all major economic shocks, businesses that remain engaged and adaptable will be best placed to trade profitably and make the most of the opportunities that they offer.
Some key issues to consider:
- VAT – sales of goods to and from the UK become imports and exports (no acquisitions), which would need to clear customs and incur import charges – triggering a cash flow disadvantage (the delay between paying customs charges and entitlement to recover the input VAT). This can be mitigated by using deferment and customs warehousing arrangements.
- Customs Duty – on Brexit the UK will no longer be part of the EU’s Customs Union. As a result, EU customs duties could apply to imports from the UK, making it less attractive for EU companies and consumers to source goods from UK companies. Similarly, the UK Government may extend the current UK customs duty tariff to imports from the EU, adding costs for UK companies reliant on raw material and finished goods from EU suppliers.
- Repatriating profits and withholding taxes – withholding taxes on dividends from EU subsidiaries or payments of interest or royalties to or from companies located in the EU will be problematic. Currently, EU legislation allows subsidiary companies to pay dividends up to a UK parent company without the need to account for withholding tax. Similarly, companies often rely on the interest and royalties directive to make interest or royalty payments free from either UK or local withholding taxes. If the benefit of this legislation is withdrawn, companies would be relying on existing double taxation agreements in order to reduce or eliminate withholding tax rates.
While the majority small UK business will be directly unaffected, these are some of the changes certain businesses need to consider in order to find a path of least resistance in this volatile climate.
Should you require further information regarding the above, please contact us on +44 (0)114 275 62 92 or email@example.com.
HMRC has backtracked on hundreds of Accelerated Payment Notices (APN) after admitting defeat following an application for Judicial Review. This affects the notices it has issued to hundreds of taxpayers as a result of a Judicial Review lodged on their behalf. This is not the first time that HMRC has undertaken a withdrawal of APNs that they had previously issued.
APNs were challenged on a number of grounds including the argument that the Employee Benefit Trust arrangements under consideration were not ‘notifiable’ to HMRC, under the DOTAS regime. HMRC has now admitted that it did not have the right to issue the APNs in relation to these arrangements.
Shipleys Tax Planning partner, Shabeer Yousuf CTA, says “this case demonstrates, that a taxpayer in receipt of an APN should not automatically assume that HMRC has followed the correct processes and exercised its powers lawfully, the taxpayer should seek specialist advice.”