Accounting for dentists,from associate to practice owner.
Dental finances have their own rules: UDA contracts, superannuation, lab fees and expensive kit. We work with associates, principals and incorporated practices across London.
What makes your finances different.
Associates are self-employed, mostly
Most associates are taxed as self-employed under a BDA-style agreement, with lab fees and bad debts deducted at source. The statements need translating into proper accounts.
NHS pension is a tax question
Superannuation contributions, the annual allowance taper and the Type 1 or Type 2 certificates all affect your tax bill and need completing every year.
Expensive equipment
Chairs, scanners and CBCT machines run to six figures. Timing purchases to use the Annual Investment Allowance can swing a year's tax bill.
Buying or selling a practice
Goodwill, stock, fixtures and the NHS contract are each treated differently for tax, and the structure of the deal decides what you keep.
What we do for you.
- Prepare associate accounts from practice statements and file Self Assessment
- Complete NHS pension Type 1 and Type 2 certificates and reconcile superannuation
- Advise on incorporation for associates and principals, including dividend planning for 2026/27
- Prepare practice accounts and Corporation Tax, with UDA and private income tracked separately
- Plan equipment purchases around capital allowances
- Run practice payroll, including nurses, hygienists and reception, with pension auto-enrolment
- Support practice purchases and sales with due diligence, valuation input and structuring
- Handle partial exemption VAT where a practice has taxable supplies such as cosmetic treatments
The tax rules that matter here.
- VAT exemption
- Dental treatment for the protection, maintenance or restoration of health is VAT exempt. Purely cosmetic treatments and the sale of goods such as electric toothbrushes are standard rated, which can create partial exemption calculations.
- NHS pension annual allowance
- Pension growth is tested against the £60,000 annual allowance, tapered down to £10,000 for adjusted income over £260,000. Scheme pays can settle a charge from the pension rather than in cash.
- Annual Investment Allowance
- Dental equipment qualifies for 100% relief up to £1 million in the year of purchase. Buying just before a year end accelerates the relief by a full year.
- Incorporation of associates
- An associate company pays Corporation Tax at 19% to 25% and the dentist draws salary and dividends. NHS superannuation can usually continue for the NHS element, but the arrangement needs setting up correctly with the practice and NHS Business Services Authority.
- Professional costs
- GDC registration, indemnity, CPD and professional subscriptions are deductible. Courses that maintain existing skills qualify; a new specialism generally does not.
Rules and rates are those in force for 2026/27 at the time of writing. Check your own position before acting.
Run your own numbers first.
- Salary vs dividend calculator
Find the most tax-efficient mix of salary and dividends from your company's profit.
- Corporation Tax calculator
Corporation Tax on your profit, including marginal relief.
- Self-employed tax calculator
Income tax and National Insurance on sole trader profits.
Worth asking.
A general accountant can file a return, but dental-specific issues such as superannuation certificates, lab fee deductions, the annual allowance taper and when to incorporate are where money is lost. We work with dentists regularly and know the practice statements and NHS forms.
Often, once profits exceed roughly £60,000 to £70,000, because a company lets you retain profit at Corporation Tax rates and pay dividends when it suits. The decision depends on your NHS pension position, the practice's willingness to contract with a company and your personal drawings. We model it with your figures.
An annual form that practitioners who are not practice owners, such as associates, complete so NHS Business Services Authority can confirm the correct superannuation contributions have been paid. It is due by 28 February following the tax year. We complete it alongside your tax return.
Treatment aimed at protecting, maintaining or restoring health is exempt, so most practices are not VAT registered. Cosmetic work, teeth whitening sold without a clinical purpose and retail products are taxable, and once those exceed £90,000 a year the practice must register and apportion its input VAT.
Yes. Chairs, imaging equipment, sterilisers and computers all qualify for the Annual Investment Allowance, giving 100% relief in the year of purchase up to £1 million. Integral features of a fit-out, such as air conditioning and electrical systems, qualify at a lower rate.
Yes. We review the accounts and UDA performance, help structure the purchase between goodwill, fixtures and property, model the funding and post-purchase cash flow, and set up the accounting and payroll from completion.
The services involved
- Self AssessmentPersonal tax return support for individuals, directors and sole traders.
- Annual Accounts & Corporation TaxYear-end accounts and company tax work within the agreed engagement.
- Payroll & PensionsPayroll processing and related workplace pension administration.
- Tax Advice & PlanningPractical tax planning for directors, sole traders and landlords, and an HMRC agent on your side all year.
Guides for dentists
All articles
Running a limited company
Most Tax-Efficient Way to Pay Yourself as a Director in 2026/27 (UK Guide)
Structuring your income in the most tax-efficient way can help reduce your tax liability and maximise take-home pay.
Running a limited company
Leveraging Director Pensions for a Tax-Efficient Strategy in 2026/27: A Guide for UK Business Owners
Director Pensions Tax Efficiency is a critical consideration for UK business owners in 2026/27, offering powerful financial planning tools for entrepreneurs.
Tax
Mastering Self Assessment 2026: A Comprehensive Guide for UK Business Owners
Master the intricacies of Self Assessment 2026 with our comprehensive guide designed for UK business owners to navigate tax laws confidently.