Employment status update for dental professionals

You may have read our article, titled, ‘Know your employment status’ in August 2017. In summary we discussed the updated rules under IR35 that were introduced from April 2017 and how the changes could impact on dental professionals.

These rules are aimed at individuals and/or their limited company taking up work for a public sector, for example, an NHS Trust carrying out the duties of what you would expect an employee to undertake. Historically, it has been the norm for dental professionals to be treated as self-employed; however this may change in due course.

Currently in Scotland, the NHS patient list is owned by the dentist – whether a principal or associate, and it’s that patient list that generates their income. As it stands, there are agreements in place between the dentists and the British Dental Association (BDA), and, or the Dental Practitioners Association (DPA). HM Revenue & Customs state in their guidance, “Where these agreements are used and the terms are followed the income of the associate dentist is assessable under trading income rules and not as employment income.”

However, The Scottish Government has indicated that they want to change this arrangement and move the patient list ownership to the practice away from the individual dentist. If these changes are implemented then the employment status of associates will be at risk. Some may argue that this is a good move for associates as they may be entitled to employee rights, which include holiday pay, statutory benefits etc., but this news will undoubtedly not be welcomed by principals, given the extra costs involved, for example – Employers National Insurance.

If you’d like to find out more information or get advice regarding your employment status, please contact our EQ Healthcare team today via healthcare@eqaccountants.co.uk or call 01382 312100.