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

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…

UK furlough scheme extended until end of October

Dentists Shipleys Tax Advisors

The Chancellor. Rishi Sunak, has confirmed the UK furlough scheme will be extended until the end of October. But there will be a gradual cut to taxpayer contribution to the scheme meaning the employers would need to share in footing the bill.

Some key points from the announcement today:

  • The scheme would continue in its present form until the end of July but would be amended between August and the end of October to “provide greater flexibility to support the transition back to work”.
  • Between August and October he would for the first time allow payments to furloughed staff working part-time.
  • He also mentioned that from August he would ask employers to share the cost with the taxpayer of the job retention scheme, although employees would continue to receive the same 80 per cent of their salary.

More details would be announced by the end of the month but his allies confirmed that the taxpayer would continue to pay the “bulk” of the costs of the scheme.

If you need help with furloughing staff please call 0114 272 4984 or email info@shipleystax.com.

COVID-19: £50k Micro-business Bounce Back Loan scheme – how it works

Dentists Shipleys Tax Advisors

The government today is introducing the new micro-loan scheme for small businesses to help small businesses who may have been unable to access other government-backed Coronavirus loan schemes.

The scheme will launch from Monday 4 May and enable businesses to:

  • Access loans of between £2,000 and £50,000 for up to six years, from a network of accredited lenders
  • The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months
  • After this period a fixed 2.5 per cent interest kicks in – meaning the government will pay the interest for the first 12 months
  • For most firms, ‘loans should arrive within 24 hours of approval’
  • Apply via a ‘simple, quick, standard form’ with ‘no complex eligibility criteria’ or ‘forward-looking tests of business eligibility’

The scheme is a not a grant but a deferred repayment loan, as such not all businesses will want to take on extra debt in uncertain times.

Unlike the Coronavirus Business Interruption Loan Scheme (CBILS), the government is to guarantee 100 per cent of these loans (as opposed to 80 per cent).

The scheme is a not a grant but a deferred repayment loan, as such not all businesses will want to take on extra debt in uncertain times.

Bounce Back Loan (“BBL”) – how it works

  • Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days
  • There is no cap on turnover for a micro-business applying for a BBL
  • Loans will be from £2,000 up to 25 per cent of a business’ turnover or £50,000, whichever is lower
  • Loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form
  • Borrowers will fill in a two-page application form in which they will certify that they have a viable business, lifting obligations on lenders to carry out their own checks
  • The length of the loan is for six years but early repayment is allowed, without early repayment fees
  • No personal guarantees are allowed, and no recovery action can be taken over a principal private residence or principal private vehicle
  • All firms trading as of March 1 will be able to get cash
  • Banks will no longer require forward financials or business plans
  • If you’ve already had a coronavirus business interruption loan of up to £50,000, that will be ported across to the Bounce Back Loans scheme
  • Eligible companies will be subject to standard customer fraud, anti-money laundering (AML) and Know Your Customer (KYC) checks prior to any loan being made
  • The borrower always remains 100% liable for the debt

Is your microbusiness eligible for a Bounce Back Loan?

Any business can apply for a microbusiness loan, however:

  • You must be UK-based and established by March 1 2020
  • Have been adversely impacted by the Coronavirus (Covid-19)
  • Confirm you are currently not using a government-backed Coronavirus loan scheme (unless using BBLS to refinance a whole facility)
  • You must not be in bankruptcy, liquidation or undergoing debt restructuring

Businesses will be required to fill in a short online application form on their lender’s website, which self-certifies whether they are eligible for a Bounce Back Loan facility. Eligible companies will be subject to standard customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks.

Who cannot apply

The following businesses are not eligible to apply:

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • state-funded primary and secondary schools

Where to find your Bounce Back Loan

Accredited lenders of Bounce Back Loans are listed on the British Business Bank website.

How to apply for a Bounce Back Loan

Businesses will be required to fill in a short online application form on their lender’s website, which self-certifies whether they are eligible for a Bounce Back Loan facility. Eligible companies will be subject to standard customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks.

Some State aid restrictions may apply to applications.

If you are looking to apply for a loan and need support please call us on 0114 272 4984 or email info@shipleystax.com.

COVID-19: Can changing a Will after death help you save paying unnecessary tax?

Dentists Shipleys Tax Advisors

Often, the tax consequences of wills aren’t considered when they’re written and can leave an unnecessary tax bill. Read our blog to find out what a post-death variation is, when you can use it, and what generally the benefits could be.

Note: this article is intended for general guidance only and does not constitute accountancy, tax or other professional advice. We recommend you seek specific advice based on your circumstances.

With the backdrop of COVID-19 being the new norm, death is not something many wish to talk about although it surrounds us now. And as many come to terms with personal loss, they are forced to deal with issues, perhaps prematurely, surrounding the financial aspects of losing a loved one.

One area where we have been inundated is in relation to wills and whether these can be changed post death.

The short answer is, as long as certain conditions are met, it is possible to change a will after death. This is known as a post-death variation, and it can be a useful tax planning tool.

A post-death variation can be made to:

  • reduce the amount of tax payable
  • to change who benefits under the will
  • place the assets of the deceased into trust
  • to provide for someone who was left out of the will

…as long as certain conditions are met, it is possible to change a will after death. This is known as a post-death variation, and it can be a useful tax planning tool.

Conditions that must be met

In order to vary a will after the deceased has died, the following conditions must be met:

  • it must be made within two years of the deceased’s death
  • all beneficiaries adversely affected by the variation must agree to it and be party to it
  • it must be made in writing
  • it must contain a statement of intent for tax purposes, specifying that the beneficiary/beneficiaries elect for the relevant statutory provisions to apply
  • if the amount of tax payable as a result of the variation increases, the personal representative must be party to it and agree to it
  • it must not be made in consideration for money or money’s worth

Although there is no requirement for new beneficiaries to sign the deed of variation, this is often done as good practice.

Effect

Where a deed of variation is made, the will is treated as if applied, as so varied, at the date of the deceased’s death.

Two-year window

There is a two-year window in which a deed of variation must be made. It is possible that in the period between the date of death and the making of the deed of variation, changes have occurred. For example, the asset that is subject to the variation may have been sold. In this situation, the proceeds, rather than the actual asset, would be redirected as a result of the deed of variation.

Once made cannot be undone

Once a deed of variation has been made, it cannot be undone. It is therefore advisable to take advice prior to varying a will.

Example

Bill dies in October 2019 leaving an estate of £1.5 million split equally between his wife, Barbara, and his sons Simon and Philip.

The family agree to vary the will so as to leave everything to Barbara to benefit from the inter-spouse exemption. Bill’s unused nil rate band will be available on Barbara’s death. Her will provides for everything to be left equally between her sons.

Where a deed of variation is made, the will is treated as if applied, as so varied, at the date of the deceased’s death.

Simon and Philip must be agree to be party to the deed of variation as they are adversely affected by the redirection.

The deed of variation is made in February 2020. The changes are deemed to be effective from the date of Bill’s death as if they represented his will at that time.

If you need help with the tax implications of the above please call us on 0114 272 4984 or email at info@shipleystax.com.

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  • 0114 275 6292
  • Wharf House, Victoria Quays,
    Wharf Street Sheffield,
    S2 5SY

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Want to know how Shipleys can help you with practical tax planning through innovative ideas? Let’s talk. Call or email us directly and a member of our team will be in touch within 48 hours.

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