Making Tax Digital for Dentists
The team at Folkes Worton have partnered with all the leading software providers and we can lead the way on advising on which software app’s that an affordable ‘Making Tax Digital’ compliant solution for professionals in the dental sector.
It’s important to choose wisely and ensure the software and app’s have been designed to help work with in the medical profession with ‘Making Tax Digital for ITSA’. The right solution will help reduce the amount of time spent dealing with financial paperwork, salary income & receipts and invoices so you can spend more time growing and developing your businesses.
Interpretation of UK tax law and employment contracts that affect dentists can be a complex area and in particular how to account for the transactions incurred – for example the Private practice income, Consultancy, NHS pensions and the format of practice accounts amongst other things. Unfortunately, many accountants claim to be specialists but are not. At Folkes Worton you will work with a specialist accountant that will help guide you through the compliance process along with providing with up-to-date advice on where you can make tax deductions.
It’s important that the right advice is giving in respect of tax deduction to avoid problems down the road, examples are:
- Professional fees or subscriptions paid to an organisation approved by HMRC. This is usually the most significant category for dentists and staff in the sector and HMRC holds a list of organisations it has approved as deductible for tax.
- Certain travel expenses.
- Donations made to charity via your payroll.
- Any payment by an employee to an occupational pension scheme such a private or the NHS pension scheme.
When it comes to MTD ITSA, it important that dentists are partnered up with the right software and software apps, having the facility to link income and add photos and electronic images to expenditure ,efficiently should result in a time saving and more accurate accounting records. The physical records can then be discarded. In addition, with the right solution you should be able to get your chosen software to generate invoices and link to your bank accounts. This should definitely result in administrative time savings and provide much clearer financial information.
The licencing and support cost can be an issue and will need to be considered for some dentists. A one-year subscription for existing bookkeeping software is often more than £200, and an MTD system will require a subscription year on year.
Why do you need the specialists at Folkes Worton:
Software companies won’t generally be able to give you accounting advice and, even if they did, they might not know about the intricacies of accounting and the UK tax affecting dentists which have a number of industry-specific rules.
