Dental Practice 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.

How is goodwill taxed when buying or selling a practice?

Dental practice owners 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

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.

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

What is a CT600?

A CT600 is the corporation tax return that limited companies must submit to HMRC annually. It reports your company's income, expenses, and tax liability. The filing deadline is 12 months after the end of the accounting period it covers. Medical.Accountants prepares these returns as part of our comprehensive company service.

Help with this question: Limited Company Accounts & Corporation Tax for Doctors & Healthcare Professionals

How much corporation tax will my company pay?

For eligible companies, the small profits rate is 19% and the main rate is 25%, with marginal relief between £50,000 and £250,000. These thresholds are reduced for short accounting periods and associated companies. Some companies are excluded from the small profits rate. We calculate the liability using taxable profits and your company’s circumstances.

Help with this question: Limited Company Accounts & Corporation Tax for Doctors & Healthcare Professionals

How should I pay myself from my company?

Company directors typically receive a combination of a tax-efficient salary and dividends. The dividend allowance is £500 for the tax year. The personal allowance of £12,570 is available but begins to taper away once income exceeds £100,000. We provide bespoke advice to ensure your remuneration strategy is compliant.