Tax tips for dental professionals

Research & Development Tax credits

Perhaps the dental profession is not the first sector you’d think of when considering whether to claim for Research & Development (R&D) Tax Credits. However, if you are involved with dental innovation or seeking an advance in dental technology you ought to seriously consider whether your business is entitled to this attractive tax relief.

R&D tax credits are a government incentive, and for the avoidance of doubt, the R&D activities are NOT required to be successful to make a claim.

What reliefs are available?

Your company will fall into one of two schemes, and the reliefs available differ in each scheme, either the SME scheme or the R&D Expenditure Credit (RDEC) scheme.  For example, where a company falls in the SME scheme, their qualifying costs are eligible for an uplift of 130%, meaning that for every £100 of qualifying spend, the company would receive a tax repayment of up to £26, assuming it was paying corporation tax.

31 July – Payment on Account

That dreaded 31 July tax payment is fast approaching – are you sure you are not eligible to reduce this payment on account?  There are a variety of circumstances that can have an impact on the payment you make in July.

Do you receive rental income from residential properties?Tax rules for residential property landlords have changed radically in recent years and are expected to significantly raise the tax burden for property owners.  It is essential that you are aware of these changes to allow you to plan ahead.

Some good news!

Corporation tax falls to 19%, with plans to reduce this rate to 17% from April 2020.

Being proactive and having an understanding of the tax changes allows you to make informed decisions for your practice.

If you would like more information about any of the above, or speak to one of our specialist dental advisors, contact our EQ Healthcare team today.