Dental Laboratory Accountants

How are dental practices valued?

Healthcare businesses such as pharmacies, dental practices and care homes are usually valued on a multiple of sustainable profit (EBITDA), adjusted for property, contracts, regulatory rating and goodwill. Clean, consistent accounts support a stronger price. We prepare normalised figures for sales or acquisitions.

Should I incorporate my dental practice?

A limited company can suit dental technicians and labs with substantial private or outside-IR35 income that is not all needed to live on, because profit is taxed at corporation tax rates and can be paid out over time. It brings extra accounts, payroll and filing costs, and NHS employment income cannot move into it. We model sole trader against limited company on your real figures first.

How is goodwill taxed when buying or selling a practice?

Dental technicians and labs pay income tax on taxable profit at 20%, 40% and 45%, plus Class 4 National Insurance on self-employed profit. Payments on account mean your first bill can include half of next year's tax too. Where income also comes from overseas, residence status and split year treatment decide what the UK taxes.

Help with this question: Practice Purchase, Sale & Valuation for Doctors & Healthcare Professionals

Does Business Asset Disposal Relief apply when I sell my practice?

Business Asset Disposal Relief may apply to the sale of a qualifying dental practice, potentially reducing the capital gains tax rate. Specific eligibility criteria must be met regarding ownership duration and business structure. We evaluate your situation as part of our fixed-fee compliance service. Proper documentation is essential for any claim.

What are the costs of setting up a squat practice?

Setting up a squat practice involves significant capital expenditure for premises, dental equipment, and regulatory compliance. Costs vary widely based on location and the scale of the fit-out. You must also budget for professional fees and CQC registration. Medical.Accountants provides remote UK-wide support to help track these start-up costs accurately.

How should associates and nurses be paid?

Associates are typically paid as self-employed individuals based on a percentage of their gross fees minus expenses. Nurses are usually employees and must be paid through a PAYE scheme. Employers may benefit from the £10,500 employment allowance to reduce National Insurance costs. We manage payroll services for healthcare businesses through our fixed-fee packages.

What due diligence is needed before buying a dental practice?

Financial due diligence involves reviewing the last three years of accounts and tax returns. You should also verify UDA performance and staff contracts. Legal due diligence covers the property lease and CQC registration status. Medical.Accountants assists buyers by analysing these financial records to ensure transparency during the acquisition process.

Help with this question: Practice Purchase, Sale & Valuation for Doctors & Healthcare Professionals

How can I fund a dental practice purchase?

Funding for a dental practice purchase can be secured through specialist healthcare lenders, often requiring a deposit. Lenders will review the practice's historical accounts and your own professional experience. Medical.Accountants prepares the necessary financial due diligence and business plans to support your application. We help you understand the tax implications of different financing structures.

How does VAT partial exemption work for practices with cosmetic income?

Most health care by registered professionals is VAT exempt where the main purpose is protecting or restoring health, so many clinicians never register. VAT becomes relevant when you sell goods, provide cosmetic or medicolegal services, or exceed the registration threshold with taxable income. HMRC Notice 701/57 gives the official guidance.

Help with this question: VAT Registration & Returns for Doctors & Healthcare Professionals

Help with this question: Payroll & Pensions for Doctors & Healthcare Professionals

How should NHS contract income and UDAs be accounted for?

NHS contract income, including PCN, ARRS and UDA or orthodontic contract payments, must be accounted for in the period it is earned, with clawbacks provided for. Partners' profit shares and drawings are kept separate. Accurate accounts also drive the pension certificates each partner submits.

Are my services exempt or standard-rated?

Medical care provided by registered health professionals is generally VAT exempt if the primary purpose is protecting health. Purely cosmetic procedures and medicolegal reports are typically standard-rated at the prevailing rate. You must monitor your taxable turnover against the £90,000 registration threshold. Determining the correct liability requires a detailed review of your specific services.

What is partial exemption?

Partial exemption applies when a healthcare business makes both VAT-exempt and taxable supplies. You cannot usually reclaim all input VAT if you have exempt income. A specific calculation determines how much VAT on overheads is recoverable. This is a common requirement for GPs and consultants with mixed income streams.

Help with this question: VAT Registration & Returns for Doctors & Healthcare Professionals

Help with this question: Payroll & Pensions for Doctors & Healthcare Professionals

What happens if I registered late?

Failure to register for VAT when your taxable turnover exceeds £90,000 may result in financial penalties. HMRC may also charge interest on the VAT that should have been paid from the effective date of registration. You will be liable for the VAT on past sales regardless of whether you charged it. Early disclosure often helps in mitigating these penalties.