You’re a newly qualified associate dentist – now what?

Congratulations! After years of hard work you are now a newly qualified associate dentist. However, as you are now self-employed there is lots to think about so we’ve covered some of the main queries below.

Do I need an accountant?

You will need to register with HMRC as self-employed. If you appoint an accountant they will do this for you and ensure you are correctly set up and ready to complete your first tax return. This will also allow you to ask them any early questions you may have and what they want from you and when.

When is my tax return due?

Tax returns are made up to 5 April each year and are due to be submitted and paid by the following 31 January. The quicker you get your information into your accountant after 5 April, the sooner you will know your tax liability and have time to plan payments.

How much should I budget for my tax liability?

You are taxed on your profits, so income minus any tax allowable expenses. These are taxed at the following rates:

This can vary year on year and everyone will have different levels of income. We recommend that you save a third of your monthly income towards your tax liability. You don’t pay this to HMRC each month, instead set this aside in a separate bank account until payment time arises. You have to pay double your tax bill in the first year so make sure you budget for this.

What do I need to keep record of?

Keep your monthly earnings schedules (showing gross income plus any deductions such as lab fee and superannuation) along with receipts for business expenditure such as equipment, subscriptions, and courses. You can claim expenses which are wholly and exclusively for the purpose of your job. Travel expenses can only be claimed if you are traveling to somewhere out with your dentistry practice. If you have any other sources of income, please also keep a record of this. You can store this information in a folder, on a spreadsheet, whatever is easier for you, but please retain a copy of the original schedules and receipts.

Why should I choose EQ Healthcare to help me?

Our EQ Healthcare team help new dental associates right the way through their careers – from joining a practice to starting their own. With a knowledgeable, experienced team of dental professionals, you’ll be in safe hands. As a new associate, we will ensure your tax affairs are in order and adhere to current legislation whilst also providing advice on any other areas of your business you may have, allowing for tax returns to be a stress-free process. We can help you every step of the way and are always available should you want to ask us any questions.

If you would like further information on the services we provide, please get in touch with our EQ Healthcare team by calling one of our offices or emailing healthcare@eqaccountants.co.uk.