Compass Accounts

🦷 Have You Done Your Dental Tax Health Check This Year?

Dentists, are you confident your tax affairs are fully optimised? 💷📊

From NHS and private income to pensions, equipment, professional expenses, VAT and upcoming tax deadlines — small oversights can have a big impact on your finances. ⚠️

A proper dental tax review can help you identify potential tax-saving opportunities, stay compliant and make better financial decisions for your dental practice. 📈✅

🔍 Your tax health check should cover:
🦷 NHS & private income
💰 Pension & annual allowance
💻 Equipment & capital allowances
📚 GDC, indemnity, CPD & software expenses
🧾 VAT considerations
📅 Self Assessment & payment deadlines

Ready to review your dental finances?
📩 DM “TAX CHECK” to book your dental finance review with Compass Accounts.

Scottish Dentists: Are You Paying the Right Tax? 🦷💷

Scottish dentists, are you calculating your tax using the correct Scottish tax bands? 🧾🏴

If you’re self-employed, your dental profits may be subject to Scottish Income Tax and Class 4 National Insurance — and using England/Wales tax examples could lead to inaccurate tax forecasts. ⚠️

For 2026/27:
📌 Higher rate: 42% from £43,663
📌 Advanced rate: 45% from £75,001
📌 Top rate: 48% over £125,140
📌 Class 4 NIC may also apply to self-employed profits.

💡 The key? Forecast your Scottish dental income and tax liability using Scottish rates, not generic UK examples.

Planning ahead can help you understand your tax position, manage cash flow and make better financial decisions. 📊💰

Are you a Scottish dentist or dental practice owner? Make sure your tax planning reflects the rules that actually apply to you. 👇

Are You Ready for MTD? What Dentists Need to Change Now 🦷📊

Making Tax Digital (MTD) is changing how self-employed dentists manage their tax records in the UK. 🇬🇧💻

From 6 April 2026, many dentists with qualifying income above £50,000 will need to follow MTD for Income Tax — meaning digital record keeping and regular updates become part of the routine. 📅

And the income threshold is set to fall to £30,000 in 2027 and £20,000 in 2028.

🦷 What does this mean for dentists?
✅ Keep accurate digital records
✅ Use compatible accounting software
✅ Connect your business bank feeds
✅ Stay organised throughout the year
✅ Avoid relying on paper records until tax season

⚠️ Waiting until January could leave you rushing to organise months of financial information.

The best time to prepare your dental practice for Making Tax Digital is now.

Are your dental practice records ready for MTD? 👇

Is Your Cosmetic Dentistry Income Really VAT Exempt? 🤔🦷

Description:
⚠️ Dentists, are you sure all your private and cosmetic dentistry income is VAT exempt? Not all private dental income automatically qualifies for VAT exemption.

While dental care and treatment provided for healthcare purposes is generally VAT exempt, purely cosmetic procedures may be standard-rated. 🦷💷

Cosmetic dentistry should be reviewed case by case, especially when the treatment involves whitening, aesthetics, or other cosmetic work. Good clinical notes can also help demonstrate the purpose of the treatment. 📋

Before growing your cosmetic dentistry income, make sure you review the VAT implications. A small assumption today could lead to a costly VAT issue later. ⚠️

Can Dentists Claim CPD & Training Costs? 🤔🦷💰

Not every CPD or training course is automatically tax-deductible! 👀

If the training improves skills and knowledge you already use in your dental practice, keeps you up to date with dental technology, or helps you adapt to industry changes, the costs may be allowable. 📚🦷💻

However, training to start a completely new or unrelated business is treated differently. ⚠️

Before booking an expensive course, it’s always wise to check whether the cost may be claimable. Keep your course invoices, booking confirmations, travel receipts, and course descriptions organised. 🧾📁

Smart tax planning starts before you spend. 💡

Bought Your Loupes Before You Started Working? Could They Still Be Tax Claimable? 🤔

New dentists often buy essential equipment before earning their first self-employed income — but did you know the timing and use of the purchase can affect its tax treatment? 🦷💼

From dental loupes and scrubs to instruments, laptops, and dental software, keeping your invoices and purchase records from day one is essential. 📄✨ If equipment was bought before you started trading or used personally first, the value used for tax purposes may need careful consideration.

🚨 Don’t make the mistake of throwing away receipts just because the purchase happened before your first payment.

Keep your paperwork, track your equipment, and get the right tax advice before making a claim. 💡

Did you know the timing of your dental equipment purchase could affect when you get tax relief? 🦷💷

Buying expensive dental equipment isn’t just a business decision — when you buy it can matter for your tax relief too. 📅

The Annual Investment Allowance (AIA) can allow qualifying plant and machinery to be deducted from taxable profits, potentially helping dental practices manage the tax impact of major equipment purchases. 💡

With the allowance currently up to £1 million for qualifying plant and machinery, planning the timing of a purchase around your accounting year-end could make a difference. 📊

⚠️ One common mistake: purchasing a major piece of equipment just after your year-end and unintentionally delaying the tax relief.

Before making a significant equipment investment, speak with your accountant and check whether the timing works in your favour. ✅

Could Your Dental Equipment Be a Tax-Saving Opportunity? 🦷💷

Bought loupes, scanners, cameras, dental chairs, IT equipment, or other surgery equipment for your practice? 🧐 Don’t assume every purchase should simply be treated as a day-to-day expense.

Some dental purchases may qualify as capital expenditure and could be eligible for capital allowances, potentially reducing your taxable profits when treated correctly. 📉💰

The key is getting the tax treatment of dental equipment right from the start. Keep your invoices, identify qualifying assets, and check how each purchase should be treated. 🧾✅

Could you be missing out on capital allowances for dentists? Let’s make sure your dental practice expenses are handled correctly. 👇

Could your dental company be making smarter pension contributions? 💡🦷

For dentists running through a limited company, employer pension contributions can be a tax-efficient way to extract value from the company—without simply taking everything as salary or dividends. 📊💷

A company may be able to claim Corporation Tax relief on employer pension contributions when the payment meets the relevant deductibility rules. But there’s an important catch: the contribution must be wholly and exclusively for the purposes of the business. ⚖️

And before making a large contribution, don’t overlook the annual allowance, business purpose, and timing. One wrong assumption could create an unexpected tax issue. 🚨

If you’re a limited company dentist, dental practice owner, or private dentist, reviewing pension contributions before your company year-end could be worthwhile. 📅

👉 Always check the position with a qualified accountant or tax adviser before making significant pension payments.

🦷 Do Dentists Really Need Both an NHS Pension & SIPP?

Having an NHS pension doesn’t always mean you should ignore a SIPP. But does adding a SIPP make sense for your retirement strategy? 🤔

NHS dentists may already be building valuable pension benefits through superannuation, while a SIPP can provide additional flexibility for private income and long-term retirement planning. 📈💷

The important part? **Pension limits matter.** Your NHS pension growth can count towards your Annual Allowance, so additional SIPP contributions need careful review. High-earning dentists may also face the **Tapered Annual Allowance**.

⚠️ The mistake is focusing only on tax relief while overlooking pension limits.

👉 Review your **NHS pension, SIPP and Annual Allowance together** before making additional contributions.