Dentists Supernannuation

Dentists Supernannuation

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Hi,

Does anyone know if the income of a Dental associate, which is paid net of superannuation contributions (pensions contributions to NHS scheme by the individual) should be grossed up by these contributions in the Limited Company Accounts?

Previous accountant did not gross up but I believed the numbers should be grossed up. the only guidance from HMRC is below:

If you're a GP or dentist and contribute to a public service scheme you are taxed as self-employed for part of your earnings so should claim tax relief through your Self Assessment tax return.

If you don't gross up you are saving Corp tax and reducing cash to pay out of the business as a dividend, if you do gross up and get extension of the basic rate band you are only getting 20% tax relief. On this basis the answer seems to be to leave out but not claim relief in the SA.

Any thoughts much appreciated.

Thanks

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By vince8
15th Dec 2011 11:05

Its not paid net of tax

So basic rate extension not appropriate. I'd have thought the accounts should show the true gross NHS and private fees received. You can show the superannuation as an expense but add it back then claim it on SA return, box 3 on page 4. I believe the pension statements run on a tax year basis and I would use the certificate they get, particularly if his accounting year does not run to 31/3 (5/4)

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