Clear and hassle-free advice for dentists
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.
Sections
- 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.
Why us?
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.
Cost
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
• Payroll
• 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
Why us?
• 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…
Tis the season to give…
RECENT CHANGES TO UK tax legislation have transformed the rules surrounding charitable donations, particularly impacting those involving organisations outside the UK. Previously, individuals and companies making donations to certain non-UK charities could benefit from UK tax reliefs such as Gift Aid, capital gains tax relief, and inheritance tax exemptions. However, these changes now significantly restrict the scope of eligible organisations.
In today’s Shipleys Tax note, we look at the changes to UK tax relief rules for charitable donations and how they impact individuals and businesses. We’ll cover in general the updated rules, explore planning options, and provide practical strategies to ensure your charitable contributions remain impactful and compliant.
How UK Charity Tax Relief Used to Work for International Donations
Before the changes, charitable donations to organisations based in the European Union (EU) or European Economic Area (EEA) were treated similarly to those made to UK-based charities. This meant that:
- Gift Aid: UK taxpayers could claim Gift Aid on donations to eligible EU/EEA charities, increasing the value of their contributions by 25%.
- Capital Gains Tax Relief: Donations of assets, such as shares or property, to non-UK charities could qualify for relief under the “nil gain, nil loss” principle.
- Inheritance Tax (IHT) Relief: Bequests to non-UK charities in wills were exempt from inheritance tax, ensuring that the full amount benefited the intended cause.
This favourable treatment recognised the interconnected nature of charitable work across borders, encouraging UK taxpayers to support causes globally while enjoying tax benefits.
Before the changes, charitable donations to organisations based in the EU/EEA were treated similarly to those made to UK-based charities..
New 2024 Rules: UK Charity Tax Relief Now Limited
From April 2024, tax reliefs are available only for donations to charities that meet the tightened definition of a “charity” under UK law. This includes:
- Geographical Scope: The organisation must fall under the jurisdiction of the High Court in England and Wales, Northern Ireland, or the Court of Session in Scotland.
- CASCs: Community Amateur Sports Clubs must operate within the UK and provide facilities for eligible sports exclusively in the UK.
- EU/EEA Charities: While there was a transitional period for non-UK charities to adjust, this ended on 5 April 2024.
Donations to Non-EU/EEA Charities
Donations made by UK individuals or companies to charities outside the EU/EEA, such as those in Pakistan, Bangladesh, or the Middle East, generally do not qualify for UK tax reliefs. Under UK law:
- No Gift Aid or Tax Relief: Direct donations to charities in these regions are not eligible for Gift Aid, capital gains tax relief, or inheritance tax exemptions.
- The Alternative: To benefit from UK tax reliefs, donations must be channelled through a UK-registered charity or donor-advised fund (DAF). These entities can distribute funds to overseas causes while ensuring compliance with UK tax rules.
Case Study:
James, a UK taxpayer, wishes to donate £15,000 to a health initiative in Bangladesh. If he donates directly to the Bangladeshi charity, he receives no tax relief. However, by donating to a UK-registered DAF, which then supports the same initiative, James can claim Gift Aid, increasing his donation’s value to £18,750, and receive income tax relief on the amount contributed.
This approach ensures his support remains impactful while benefiting from UK tax efficiencies.
How Can Donors Plan for the New Rules?
- Review Existing Donations:
- Check whether the organisations you support still qualify for tax reliefs.
- If not, explore UK-based alternatives or partner organisations that achieve similar objectives.
- Utilise Donor-Advised Funds (DAFs):
- A DAF is a flexible giving vehicle that allows donors to make a contribution, claim tax relief immediately, and distribute funds to eligible charities over time.
- Example: Emma sets up a DAF with £50,000. She claims tax relief on the contribution and later supports approved UK charities in education and healthcare.
Donations made by UK individuals or companies to charities outside the EU/EEA, such as those in Pakistan, Bangladesh, or the Middle East, generally do not qualify for UK tax reliefs
- Establish a UK-Based Charity or Trust:
- For individuals supporting overseas causes, setting up a UK-based charity that funds projects abroad can ensure compliance with UK rules while retaining tax benefits.
- Example: Sarah establishes a UK charitable trust to support educational initiatives in India, maintaining tax efficiency for her donations.
- Diversify Donation Methods:
- Beyond cash donations, consider giving assets like shares, property, or other valuable items. This may also help reduce other tax liabilities.
- Example: Tom donates a portfolio of shares worth £30,000 to a UK charity, avoiding capital gains tax and receiving income tax relief.
The Bigger Picture
The changes reflect the UK government’s focus on aligning tax reliefs with domestic charitable activities. While they may limit support for international causes, proper planning ensures that donors can still achieve their philanthropic goals.
With the new restrictions on which charities qualify for tax relief, including limitations on donations to EU/EEA and global organisations, it’s more important than ever to understand how to maximise your charity giving while staying tax-efficient. So if you regularly donate to non-UK organisations, it is essential to reassess your contributions, understand the impact of the new rules, and seek professional advice to optimise your giving strategy. This will help ensure your donations remain impactful and tax-efficient under the updated rules.
For further assistance or queries, please contact us.
Leeds: 0113 320 9284 Sheffield: 0114 272 4984
Email: info@shipleystax.com
Please note that Shipleys Tax do not give free advice by email or telephone. The content of this article is for general guidance only and should not be considered as tax or professional advice. Always consult with a qualified professional before taking action.
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BUDGET 2024 – At a glance
THE UK CHANCELLOR, Rachel Reeves, today delivered Labour’s first Budget since 2010 after coming to power over the summer. A mixed bag with no real innovation to restart the UK economy. With much of the announcements being leaked beforehand, there were no surprises other than the significant change to NIC for employers.
Here at Shipleys Tax we provide a summary of the UK Autumn Budget 2024 with some brief insights on personal and business tax measures:
At a glance summary
1. National Insurance for Employers
The employer National Insurance rate will increase from 13.8% to 15% in April 2025, paired with a decrease in the NI threshold from £9,100 to £5,000. This change significantly raises costs for businesses, especially those with larger workforces or lower-wage employees, as NI contributions start sooner in the earnings scale. To offset some impact, the employment allowance is raised to £10,500, allowing about 865,000 small businesses to reduce or eliminate their NI contributions.
2. Personal Tax Adjustments
- Income Tax Threshold Freeze:
The government extended the freeze on income tax thresholds until 2028, drawing more earners into higher tax bands due to “fiscal drag.” This measure indirectly increases tax revenue without changing rates.
- Inheritance Tax:
Several IHT changes have been introduced:
- New AIM Share IHT Rate: AIM-listed shares, previously fully exempt, now only receive 50% relief, leading to a 20% effective IHT rate.
- Adjusted Relief on Business and Agricultural Assets: For estates above £1 million in business/agricultural assets, a 50% IHT relief will apply, aimed at ensuring smaller family-owned estates remain protected.
- Threshold Freeze Extended: The IHT threshold freeze, initially set to end in 2028, now extends to 2030, likely drawing more estates into the tax bracket as asset values rise.
- Pension Pots Subject to IHT: From 2027, inherited pension pots will be taxed, impacting estate planning where pensions were intended for tax-free inheritance.
3. Corporation Tax Steady
Corporation tax remains at 25%, offering stability for SMEs. While no further rate increases were announced, potential policy shifts around capital allowances could incentivize reinvestment in business growth.
4. Capital Gains Tax Increase
Capital Gains Tax is set to increase from 10% to 18% for lower rate taxpayers and from 20% to 24% for higher rate taxpayers, with no changes to the Annual Exempt Amount (AEA) of £3,000. The government’s decision to avoid a drastic hike aligns with investor concerns, especially for business asset disposals, which retain a £1 million lifetime relief. The Capital Gains Tax increase announced in the Budget reduces the gap between Capital Gains Tax and Income Tax rates, although it perhaps remains significant enough to encourage entrepreneurs to invest in their businesses.
Business Asset Disposal Relief changes – The rate of Capital Gains Tax available under Business Asset Disposal Relief remains at 10% this financial year, rising to 14% in April 2025 and 18% in 2026. The lifetime limit of £1m remains unchanged.
Currently, Business Asset Disposal Relief reduces CGT to 10% on all qualifying gains, a major tax incentive that benefits company directors providing the conditions are met. While BADR continues to provide access to reduced rates of Capital Gains Tax, the CGT rate is set to increase from 6 April 2025.
5. VAT and Digital Compliance
SMEs in the e-commerce sector face tighter VAT compliance as the government rolls out new VAT collection mechanisms, aimed at narrowing the tax gap on digital sales. This step aligns with the broader effort to improve tax efficiency in digital transactions.
6. R&D Tax Credits Expansion
R&D tax credits are extended, particularly benefiting SMEs in tech and green sectors. Eligible SMEs can claim up to 20% of R&D expenses, supporting innovation-focused businesses.
7. Apprenticeship and Training Grants
New grants now cover 50% of training costs for SMEs investing in apprenticeships, addressing skill shortages across key sectors
More to follow.
For further assistance or queries, please contact us.
Leeds: 0113 320 9284 Sheffield: 0114 272 4984
Email: info@shipleystax.com
Please note that Shipleys Tax do not give free advice by email or telephone. The content of this article is for general guidance only and should not be considered as tax or professional advice. Always consult with a qualified professional before taking action.
Want more tax tips and news? Sign up to our newsletter below.
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