Running a dental practice in the UK goes beyond patient care—it requires smart financial planning to minimise tax liabilities and stay compliant with HMRC. At Pearl Lemon Accountants, we specialise in tax planning for dentists, whether you’re self-employed, a limited company, or a locum. From tax advice and deductions to IR35 compliance and tax relief, we create customised strategies to save you money and reduce stress. Let us handle your tax returns, expenses, and financial planning so you can focus on growing your practice and delivering exceptional care.
Our Tax Planning Services for Dentists
At Pearl Lemon Accountants, we offer detailed tax planning services customised specifically for UK dental professionals. Whether you’re managing the costs of a new practice, expanding your services, or managing complex VAT rules, we provide expert guidance to ensure your finances are optimised.
By working with us, you’ll gain access to strategies that not only minimise your tax liabilities but also align with the unique needs of dental practices. Our approach means every solution is customised to your circumstances, ensuring you maximise every opportunity to save.
Capital Allowances for Dental Practices
Many practices fail to take full advantage of capital allowances, leaving thousands of pounds unclaimed. Our team ensures you benefit from schemes like:
- Annual Investment Allowance (AIA): Ideal for dental chairs, 3D imaging systems, and IT upgrades.
- Super-deduction relief: Claim 130% of qualifying costs, turning a £20,000 investment into £26,000 of tax relief.
We handle the paperwork, so you can focus on running your practice.
Tax-Efficient Business Structures
The structure of your dental practice significantly impacts your tax obligations. For high-earning dentists, operating as a limited company can reduce tax rates to 19%, compared to personal tax bands of up to 45%.
We’ll also advise on advanced structures like Family Investment Companies (FICs) to help distribute income tax-efficiently and retain wealth within your household.
Retirement Planning and Pension Contributions
We specialise in helping dentists use pension contributions to reduce taxes and secure their future. Our team can guide you on:
- Self-Invested Personal Pensions (SIPPs) for control over investments.
- Defined benefit schemes, which offer predictable income and significant tax savings.
One of our clients saved £25,000 in taxes by aligning their pension strategy with their business goals.
Managing VAT in Dental Practices
Managing VAT rules is one of the most challenging aspects of running a dental practice in the UK. We’ll help you:
- Determine the correct VAT treatment for private and NHS services.
- Reclaim VAT on qualifying business expenses, such as property refurbishments or IT systems.
Employee Cost Strategies
Employing family members or staff efficiently can significantly lower your taxable profits. We ensure adherence to HMRC rules while helping you benefit from salary planning, such as:
- Paying your spouse a reasonable salary for admin roles.
- Hiring family members for part-time positions to make use of their tax allowances.
R&D Tax Credits for Dentists
Innovation is more common in dentistry than many Realise. Whether you’re adopting new materials or implementing state-of-the-art techniques, you could qualify for R&D tax credits.
We’ve helped clients claim back 33% of eligible expenses, turning their commitment to excellence into significant tax savings.
Year-End Tax Planning
Proactive planning as the tax year ends can save you thousands. We’ll work with you to:
- Prepay expenses to reduce current-year taxable profits.
- Offset gains with losses to minimise Capital Gains Tax (CGT).
- Use allowances like the Augusta Rule for home-office deductions.
Why Choose Pearl Lemon Accountants?
Our expert accountants specialise in providing targeted financial solutions for dental professionals, helping you manage tax complexities with ease. Here’s what sets us apart:
UK-Specific Expertise
Our in-depth knowledge of HMRC rules means we’re always ahead of the curve when it comes to changes in tax legislation. Whether it’s VAT categorisation for dental services or capital allowance claims, we ensure your tax planning is not only effective but fully compliant with UK law.
Custom Solutions
We understand that no two dental practices are the same. Whether you’re a solo practitioner or managing multiple clinics, we create strategies customised to your income streams, expenses, and long-term goals. Our personalised approach ensures maximum tax efficiency for your practice.
Proactive Support
Tax laws and regulations are constantly evolving, and staying updated can be overwhelming. We monitor changes on your behalf, providing timely advice and adjustments to your tax strategy, so you never miss an opportunity to reduce liabilities and save money.
What to Expect from Our Tax Planning Services
Our services go beyond standard tax advice. We deliver personalised, thorough, and ongoing support to help your dental practice succeed financially. Here’s what we offer:
A Detailed Tax Assessment
We conduct a dig deep into your financial records to uncover hidden opportunities for tax relief. From unclaimed capital allowances to overlooked expenses, we ensure no savings are left on the table.
Detailed Guidance
Managing tax intricacies can be daunting, especially when dealing with VAT classifications, mixed-income streams, or large equipment purchases. We handle these technicalities, ensuring your tax affairs are precise, compliant, and optimised for savings.
Ongoing Advice
Tax planning isn’t a one-off process—it’s an ongoing journey. Throughout the year, we monitor changes in legislation and your business operations, providing timely updates and adjustments to keep your tax strategy effective and future-proof.
Frequently Asked Questions
Under AIA and super-deduction relief, you can claim deductions for most dental equipment. For example, an X-ray machine worth £30,000 could result in over £39,000 of tax relief.
Contributions to a SIPP or defined benefit scheme are deductible against taxable income, reducing the amount owed to HMRC.
Yes, as long as the courses directly improve your skills or support your practice operations.
Yes, under the Capital Goods Scheme, you can reclaim VAT on major refurbishments, provided the property is VAT-registered.
Activities like testing new materials, developing innovative treatments, or implementing advanced equipment could all qualify for significant credits.
Let Pearl Lemon Accountants Handle Your Tax Strategy
With our deep understanding of the UK dental industry, we’ll help you reduce your tax bill, stay compliant, and keep your focus on what matters most—your patients. Schedule your tax planning consultation today and see how we can make a difference in your practice.
