Specialist Dental Tax & Accounting Advice
Dentists
Clear, hassle-free support for dentists with fixed fees.
At Shipleys Tax, we’ve been working with the dental profession for over 15 years – providing clear, proactive advice that help dentists optimise tax, protect profits, use tax efficient structures to grow, or just become a financially savvy individual.
We act for dental clients all over the UK, including:
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Associates and single-handed/squat practices
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Larger partnerships and corporates
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Dental clinics, hygienists, consultants
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Specialists such as orthodontists, endodontists, oral surgeons, and periodontists
With NHS pension and contract reforms, staff shortages, rising costs, and pressure to expand into private work, working in a dental business has never been more complex. At Shipleys Tax we help you stay compliant, reduce tax burdens, and plan strategically so you can focus on your life goals.
Sections
- Dental Principals and Practices
- Dental Associates and Self Employed DCPs
- Tax Planning services for Dentists
Dental Principals and Practices
Owning or running a dental practice brings both opportunities and risks. With NHS dentistry undergoing fundamental reforms, practice owners need to adapt to new funding models while keeping control of costs and cashflow.
At Shipleys Tax, we help principals and practice owners with:
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Specialist knowledge of NHS practice funding (including GDS/PDS contracts and NHS England reforms)
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Specialist guidance on NHS pension and superannuation issues
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Advice on UDA values, contract changes, and the evolving primary care dental market
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Handling all aspects of accounting, tax compliance, and partner drawings so you can focus on clinical care
Why choose a specialist dental accountant?
Not all accountants are the same. You need an adviser that understands the realities of dental practice management and can spot opportunities for tax savings that general accountants may miss, as well as access to specialist dental tax advisers with many years expertise in the field.
Why do you need a specialist dental accountant?
• Specialist knowledge of NHS general practice and the expert experience we have can be instrumental in planning your next move
• Understanding how practices are funded by NHS England (ex-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 Shipleys Tax?
We aim to do more than produce the annual accounts and handle the principals’ tax affairs – we act as your strategic tax partner.
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Personal service – one partner-led team, not a call centre
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Timely – we work to agreed timescales and visit practices to discuss results
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Proactive – cashflow, drawings, and bookkeeping support included
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Tax planning built-in – from reducing income tax and corporation tax to CGT, inheritance tax, SDLT, and succession planning
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 and, ultimately, your life goals.
With nationwide coverage, we work with dental practices all across the UK.
Fees
What out basic annual fee covers:
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Preparation of annual statutory accounts
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Partnership tax return and tax computation
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Partners’ personal tax returns
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Profit projections and liability planning
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Meetings with principals to discuss draft accounts
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Unlimited email and phone queries
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Ongoing tax planning reviews for partners/shareholders
We also advise on:
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Incorporation and restructuring for NHS and non-NHS income
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Practice purchase or sale (structuring for maximum tax efficiency)
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HMRC enquiries and investigations
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Payroll and employment tax compliance
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Succession, IHT, CGT, and SDLT mitigation strategies
Dental Associates and Self Employed Dental Care Professionals (DCPs)
We’ve supported dental associates, hygienists, and therapists for many years and understand the challenges of balancing NHS work, self-employment, and private income.
What does the service include?
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Registering with HMRC and advising on employed vs self-employed status
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Claiming tax-deductible business expenses and subscriptions
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Annual accounts and self-assessment tax returns
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Guidance on NHS superannuation and student loan deductions
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Advice on employing a spouse and structuring income tax efficiently
- Ad-hoc telephone and email advice
Additional advisory services:
- Tax efficient structures for associates/hygienists/therapists
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Limited company incorporation and its impact on income extraction and superannuation
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Finance routes for practice acquisitions (ethical and standard)
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Tax planning for overseas dentists
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Inheritance tax and property tax planning
Many dental associates after a few years aspire to have a practice of their own. We will handhold you through the whole process including:
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The most tax-efficient way to structure ownership
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Due diligence on target practice accounts
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Introductions to specialist dental solicitors and lenders
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Advice on staff, payroll, record keeping and surgery compliance
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Tax planning to ensure the deal is optimised from day one
Why us?
• Save you money – proactive services ensuring you are aware of tax savings
• Knowledge you can trust – 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 start from £495 + VAT for associates.
|
Package |
Annual Fees (from) |
What’s Included |
Best For |
|---|---|---|---|
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Essential |
£495+VAT |
Annual accounts & self-assessment tax return – Guidance on allowable expenses & record keeping – HMRC registration support (if required) – Telephone/email queries |
New associates or hygienists needing straightforward compliance |
|
Pro |
£695 + VAT |
Everything in Essential, plus: Proactive NHS superannuation guidance – Cashflow planning & tax liability forecasts• Advice on employing a spouse & NIC structuring – Regular contact with our dental tax team |
Established associates looking for proactive planning and support |
|
Premium |
£995 + VAT |
Everything in Professional, plus: Incorporation and company tax planning advice – Mortgage & loan support (liaising with banks) – Practice acquisition guidance – Tailored inheritance tax & property tax planning |
Associates preparing to buy a practice or seeking advanced planning |
Tax Planning for Dentists
Tax law never stands still – especially in healthcare. With NHS reforms, rising costs, and increased focus on private income, proactive planning has never been more important.
The most effective tax planning is typically done before a major event, so seek advice early on in the lifecycle of a business or personal financial transaction.
Our specialist tax advisers can help with:
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Buying or selling a practice – saving on both personal and corporation tax
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Structuring dental/health clinics tax-efficiently
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Inheritance tax and estate planning for dentists
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Reducing SDLT on property purchases
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Asset protection and succession planning
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Offshore and international tax for cross-border practices
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Property development and investment structuring
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Using EIS/SEIS and corporate vehicles for expansion
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LLP and partnership planning
Why Dentists Choose Shipleys Tax
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15+ years’ proven expertise in the dental sector
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Proactive tax planning tailored to NHS and private practice needs
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Nationwide coverage with partner-led personal service
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Transparent pricing and ongoing support
Latest news & blogs…
Top Tips for Getting Your Tax Return Right
IT’S THAT TIME of the year again and the dreaded 31 January self-assessment tax return deadline is fast approaching. Missing this critical date or filing an inaccurate return can lead to hefty penalties, investigations, and stress. HM Revenue & Customs (HMRC) has advanced tools to check your finances and identify undeclared income.
In today’s Shipleys Tax note, to help you meet the deadline and avoid taxing problems, here are some basic top tips to get your tax return right and a general insight into how HMRC might verify your information.
Top Tips for Getting Your Tax Return Right
1. File Your Tax Return on Time
This is the number one for a reason. Filing late is an automatic red flag for HMRC, and penalties start from £100, even if you owe no tax. The deadline for online submissions is 31 January 2025, so act now to avoid last-minute panic.
2. Declare All Sources of Income
A very obvious one. Failing to report all your income is one of the most common mistakes, and HMRC has several ways to detect it. Be sure to include:
- Bank interest (onshore and offshore): Declare interest from savings accounts. Offshore institutions report account details under the Common Reporting Standard (CRS).
- Rental income: Include income from properties rented privately or via platforms like Airbnb. HMRC can track property ownership and rental activity.
- Self-employment income: Report all freelance or gig work earnings, including payments through platforms like PayPal, Etsy, or Fiverr.
- Trading gains: Include profits from share trading, forex, or cryptocurrency transactions.
3. Avoid Common Errors
Mistakes can result in penalties or compliance checks. Common errors include:
- Incorrect personal details, like your National Insurance number.
- Miscalculations in income or expenses.
- Forgetting to sign and date paper submissions. Double-check your return or use professional services to calculate figures accurately.
4. Include Child Benefit and Student Loan Repayments
If your income exceeds £50,000, you may need to pay the High Income Child Benefit Charge (HICBC). Similarly, ensure student loan repayments are calculated correctly, especially if you’re self-employed. HMRC shares income data with the Student Loans Company (SLC) to verify repayments.
5. Keep Detailed Records
Accurate record-keeping is essential for a correct tax return and protects you if HMRC asks for evidence. Keep:
- Receipts for expenses.
- Tenancy agreements for rental income.
- Bank statements aligning with declared income.
6. Check Your Tax Code
Ensure your tax code is correct, especially if you’ve changed jobs or started receiving rental or investment income. An incorrect tax code can lead to under- or overpayments.
7. Use HMRC’s Online Tools
HMRC provides calculators for self-employment income, student loans, and expenses. Using these tools can reduce the risk of errors and make your submission smoother.
8. Seek Professional Advice
For complex financial situations, such as rental properties, offshore accounts, or multiple income streams, consult an experienced tax adviser. Professional advice will pay for it self, ensures compliance and peace of mind.
How HMRC Can Check Your Finances
HMRC has access to powerful tools and international data-sharing agreements to identify undeclared income and errors. Here’s how they ensure compliance:
1. The ‘Connect’ System
HMRC’s Connect system analyses vast amounts of data to identify discrepancies between tax returns and third-party information. Sources include:
- Banks and financial institutions.
- Land Registry and property records.
- Online marketplaces like eBay and Airbnb.
- Social media and advertising data for side hustles.
2. Automatic Exchange of Information (AEOI)
Through the Common Reporting Standard (CRS), over 100 countries exchange financial data with HMRC. This includes:
- Offshore bank accounts and interest.
- Investment gains.
- Account balances and transactions.
3. Data Matching
HMRC cross-checks data from employers, banks, and institutions to spot inconsistencies. For instance:
- Rental income is matched with property ownership records.
- Dividend payments are compared to declared investment income.
4. Online Activity Monitoring
Platforms like Etsy, PayPal, and Airbnb are monitored for undeclared income. HMRC also investigates trading platforms for cryptocurrency or stock trading gains.
5. Voluntary Disclosure Campaigns
HMRC runs initiatives like the Let Property Campaign and the Worldwide Disclosure Facility (WDF), encouraging taxpayers to disclose undeclared income. Those who fail to comply face investigations and penalties.
Consequences of Getting It Wrong
Failing to file your tax return accurately or on time can result in severe consequences:
- Financial Penalties:
- Late filing: A fixed £100 penalty for returns filed after 31 January.
- Inaccuracies: Penalties of 30% to 200% of unpaid tax, depending on the severity of the error.
- Backdated Tax Demands:
- HMRC can recover unpaid taxes for up to 20 years in cases of deliberate evasion.
- Criminal Prosecution:
- Severe cases may lead to prosecution, fines, or imprisonment.
- Increased Scrutiny:
- Non-compliance can result in future audits and ongoing monitoring.
- Reputational Damage:
- Publicised cases of evasion can harm personal and professional reputations.
Act Now to Avoid Trouble
With the 31 January deadline fast approaching, now is the time to act. Filing an accurate tax return and meeting your obligations is the best way to avoid penalties and HMRC scrutiny. Use these tips, double-check your figures, and seek advice if needed.
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.
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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