I am about to engage in discussions with a self employed dentist to act as their accountant and tax adviser but i know it is a very specialist area. Or is that more GP surgeries? My question is how different if at all are the accounts? i have noticed there a several notices on HMRC site for dentists and medical profession which i will be looking at in detail prior to my meeting. I would welcome any advice from those who already deal with the Self Employed dentists. Thank you
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Supeann and lab fees
Assuming it's an associate dentist rather than a partner, you may find they receive their "wage" net of various items, such as lab fees, superannuation, etc. Usually they get a percentage of their gross fees earned, the amount deducted being their contribution towards practice running costs. A typical "payslip" may be:-
Gross fees £10,000
Your share 50% £5,000
Less lab fees £1,000
Less Superann £500
Net (banked) £3,500.
Superann wouldn't apply if it were a fully private practice. Otherwise it's deducted before the practice gets the money from the NHS. It obviously needs adding back to increase taxable profits and then deducting in the tax return to get tax relief (remember to put it in the right pension contribution box as you want full tax relief on it, not just H/R).
You'll also find they pay their own PI insurance and will usually have 2/3 professional subscriptions, not just one.