Accountants for Dentists in Burgess Hill: Specialist Tax and Accounting Support

NHS and private income usually need to be recorded separately so that each can be reported correctly and reconciled against the payments actually received. Where you work as an associate, this may also involve matching your agreed percentage or sessional arrangement to the amounts showing on practice statements. Where you own a practice, the accounting needs to reflect contract income, private treatment fees and any other revenue the practice generates. Getting the recording structure right at the start makes tax reporting, VAT considerations and performance reporting far more reliable later on, particularly if your income mix changes during the year.

Associate dentists are often self-employed for tax purposes, which means registering with HMRC, filing a Self Assessment tax return and keeping records of income and allowable expenses. Relevant expenses can include indemnity cover, GDC and professional body subscriptions, professional development and travel between practices, depending on the circumstances. If you also hold an employed role, or receive income from other sources, more than one part of the return may apply to you. Many associates also want help understanding payments on account, so the tax bill does not arrive as a surprise.

There is no single answer, because it depends on how the practice is owned, how profits are shared, how many principals are involved and what the owners want to achieve. Partnerships are common where two or more dentists run a practice together, while a limited company structure may suit certain practices and profit extraction preferences. Each route carries different filing, reporting and tax considerations, and the position can change as a practice grows or as owners' circumstances shift. It is usually worth reviewing the structure periodically rather than treating an early decision as permanent.

Broadly, you should keep records of all income received and all costs incurred in carrying on your profession, along with supporting documentation such as invoices, bank statements, contracts and practice statements. Typical dental-related costs can include indemnity or professional insurance, registration and subscription fees, clinical equipment, laboratory work and certain training costs, though whether an item is allowable depends on the specific facts. Some expenditure is treated as capital rather than revenue, which affects how and when relief may be available. Keeping records organised through the year makes both the tax return and any future enquiry far easier to deal with.

Yes, practice payroll is a common requirement, covering dentists, hygienists, nurses, reception and administrative teams, and it involves calculating pay, deductions and employer costs while meeting reporting obligations to HMRC. VAT is a separate question and depends on the services a practice supplies and its taxable turnover, so registration is not automatic and not always beneficial. Where a practice provides a mix of NHS and private treatment, the VAT position can be more involved than it first appears, and the treatment should be reviewed against the specific facts rather than assumed.

Switching usually involves giving authority for your previous accountant to release information, then transferring records, prior filings and accounting software access across. There is often a catch-up element, particularly if bookkeeping has fallen behind, so bringing historical information up to date is generally part of the process. Once records are in order, the focus moves to current filings and deadlines. If you are unsure what has already been submitted to HMRC, that can be checked as part of the handover so nothing is overlooked.

Fees are normally based on the scope of work involved rather than a flat rate applied to every dentist, because an associate with straightforward self-employment income has a very different workload from a practice with staff, premises and VAT. Relevant factors can include the number of income sources, whether annual accounts and Corporation Tax are required, payroll headcount, VAT status and how well records are maintained. We set out the basis of our fees before work begins so there are no unexpected costs, and the arrangement can be adjusted if your circumstances change.

A good starting point is a clear picture of how you work, including your contracts or associate agreements, your practice structure if you are an owner, and details of all income sources such as NHS contract payments, private fees, employment or partnership income. It also helps to have recent bank statements, records of professional expenses, and copies of previous tax returns or accounts if available. If you use accounting software or practice management systems, access to those speeds things up considerably. From there we can identify what needs doing first and set out a sensible order for getting everything up to date.