Limited Company Accounts & Corporation Tax for Dental Practices

What accounts must a limited company file?

A limited company can suit dental practices 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.

When are Companies House and HMRC deadlines?

Many dental practices must file a Self Assessment return: you need one if you have untaxed income such as private, locum or self-employed work. A high PAYE salary alone does not require Self Assessment for 2026/27; check HMRC's current criteria and any notice to file. The online filing and payment deadline is 31 January after the tax year ends. Under the non-MTD rules, late filing normally triggers an initial £100 penalty, with further penalties for longer delays. A different regime applies from the tax year you join MTD for Income Tax.

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.

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.

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.

What is a confirmation statement?

A confirmation statement is a document that verifies your company's legal details are up to date at Companies House. It must be filed at least every 12 months. It confirms information such as directors, shareholders, and the registered office address. Medical.Accountants manages these filings to ensure your company remains compliant.

What happens if accounts are filed late?

Late filing of accounts or tax returns results in automatic financial penalties. For individuals, an initial £100 penalty applies for missing the 31 January Self Assessment deadline. Companies House also imposes tiered fines for late statutory accounts. We monitor your deadlines closely to help you avoid these unnecessary costs.

Can I do my own company accounts?

While you can legally prepare your own accounts, they must comply with complex UK accounting standards. Most medical professionals prefer to instruct specialist accountants to ensure accuracy and compliance. Medical.Accountants provides a remote service to handle these technical requirements for you. Our fees are agreed in writing beforehand.

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 practices 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 practices 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 Dental Practices

How long does company formation take?

Companies House says online incorporation is usually completed within 24 hours, but checks or missing information can cause delays. Directors may need to verify their identity before applying. Incorporation does not complete all banking, tax or professional registrations. Confirm the structure, application requirements and expected timetable before committing to trading dates.

What registrations are needed after incorporating?

Following incorporation, you must register for corporation tax and set up a PAYE scheme for any salaries. You may also need to register for VAT if your taxable turnover exceeds £90,000. Medical.Accountants handles these registrations on your behalf. We ensure your business is correctly set up with HMRC from the outset.

Can I transfer my existing work into a company?

It is often possible to transfer a private practice or locum business into a limited company structure. This process requires careful planning regarding assets, contracts, and tax implications. Medical.Accountants can review your current setup to determine the most appropriate transition strategy. We provide clear guidance on the professional requirements involved.