Accountants for Dentists in Cardiff: Specialist Tax and Accounting Support

A self-employed dentist is responsible for reporting income and expenses through Self Assessment, and that responsibility sits with you whether or not you use an accountant. Where an accountant can help is in making sure the figures are complete and correctly treated, particularly where you receive fees from more than one practice, hold both employed and self-employed income, or have costs that could be claimed but are easily overlooked. An accountant can also prepare the return, deal with HMRC correspondence and help you plan payments so that tax bills do not arrive as a surprise.

Both are generally part of your taxable income, but they often arrive in different ways and at different times, which makes record-keeping more involved. NHS contract payments may be received in monthly instalments with reconciliation adjustments, while private fees come in as treatment is completed or in stages. Keeping these streams clearly separated in your bookkeeping makes it easier to reconcile contract statements, monitor practice performance and prepare accurate accounts and tax returns at the end of the period.

Expenses generally need to be incurred wholly and exclusively for the purposes of your business to be allowable, and what qualifies can vary depending on whether you are employed, self-employed or running a practice through a company. Costs that dentists commonly ask about include indemnity cover, professional body and registration fees, clinical equipment, continuing professional development, practice premises costs, and travel between sites. Some items, such as equipment, may be treated as capital rather than a straightforward expense, so it is worth checking how a purchase should be handled before you assume it is deductible.

Yes. Practices that employ nurses, hygienists, receptionists, practice managers or other dentists have PAYE, National Insurance and pension obligations that need to be dealt with on a regular cycle. We can handle payroll processing, payslips, RTI submissions and the associated record-keeping, and align that work with the practice accounts so employment costs are reflected correctly. Where associates are engaged rather than employed, their position is usually different, and we can look at the arrangement in place to confirm how it should be treated.

Whether VAT registration is required depends on your taxable turnover and the nature of the services you provide, and the VAT treatment of dental care, cosmetic treatment and product sales can differ from one another. Some services may be exempt while others are standard-rated, and mixed supplies can make the position more complex than a simple turnover test suggests. If you are approaching the registration threshold, or you are already registered and unsure how to treat a particular service, it is worth reviewing the position rather than assuming all dental income is treated the same way.

There is no single answer that suits every dentist. Sole trader status is common for associates, partnerships are often used where dentists run a practice together, and a limited company may suit some practice owners depending on profit levels, drawings needs, pension intentions and long-term plans. Each structure carries different tax, filing and administrative obligations, and the right choice can change as your income or practice develops. A review of your circumstances is usually the most useful starting point.

As a general guide, it helps to have your recent tax returns or accounts, details of your income sources, records of expenses, bank and credit card statements, and any HMRC correspondence you have received. If you run or part-own a practice, payroll records, VAT returns, contract or fee statements and details of equipment purchases are also useful. If you are moving from another accountant, we can usually work from what already exists and let you know what else is needed.

Practice purchases and sales bring together several areas at once, including accounts preparation, tax planning, structure decisions and the timing of income and costs around the transaction date. It is usually helpful to involve an accountant early, before terms are finalised, so that the tax consequences can be considered alongside the commercial ones. We can review the figures and discuss how the transaction may affect your accounts, tax position and future structure.