After you complete your dental foundation or vocational training you will leave the security of employment and embark on a career as a self-employed dentist. The transition may sound daunting, but hundreds of your colleagues take this step every year. With our support you will find that it is a natural progression to self-employed status.
Registering as self-employed
To begin with, you will need to notify HM Revenue and Customs that you are self-employed. Here is the link you need:
HMRC will give you a ten-digit Unique Tax Reference (UTR) and arrange collection of Class 2 National Insurance contributions, which can be paid by direct debit.
Accounts and tax return
We have specialised in working with dentists across the UK since 1991. We will calculate your tax liabilities and student loan repayments, prepare your first set of accounts and tax return, ensure that you claim all relevant business expenses and generally help to keep your tax bills as low as possible. Sometimes we can claim refunds from HMRC, depending on your previous income tax payments and National Insurance contributions.
As soon as you become self-employed, HMRC will expect you to look after your affairs, set aside the cash you need to pay tax and pay your bills in full and on time. HMRC will not normally negotiate or offer easy payment terms. This is why you should appoint a specialist accountant to look after your affairs as soon as possible. It will probably be 18 months before you receive your first tax bill, which can come as quite a shock if you have not prepared for it. By getting your business affairs in order from the start you can plan for your future liabilities.
In the early stages of your career we will probably be able to support you by post, e-mail and telephone. If your needs are particularly complex, please contact us to discuss your requirements.
When it comes to tax, paperwork is vital. You must keep all your associate pay schedules, invoices and receipts for your business expenditure. You should retain your payslips and P45 from your foundation or vocational employment. If you do not keep these records HMRC may impose penalties and it will be much harder to prepare your first tax return. We will show you the types of expenses you can claim. If you are unsure about an expense, a simple call or e-mail can easily resolve the matter.
We have a great deal of experience across all professional matters for dentists, such as:
- Mortgage references
- Pension planning and superannuation
- Financial planning and investment
- Review of associate contracts
- Practice purchase
- Buying into a partnership
- Rental accounts
We can help and advise on all of the above.