Medical.Accountants
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Tax guides

Incorporating a Medical or Dental Practice

When and how to move your practice into a company. Expert UK guide for practice owners from ICAEW-regulated accountants. Updated for 2026/27.

Should I incorporate my practice?

A limited company can suit incorporating a medical or dental practice 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.

Fixed fees, specialist healthcare accountants, and every HMRC and NHS Pensions deadline handled.

  • Fixed monthly fee — no surprises
  • Specialist in NHS pension and healthcare tax
  • Onboarding within 48 hours
Get my fixed-fee quoteBook a free 15-min tax review
  • ICAEW & ACCA regulated
  • 5,000+ clients served by ACCOTAX
  • Specialist healthcare accountants

Reviewed by Waqas Sagar ACA FCCA FMAAT, Founder of ACCOTAX, 18+ years' experience · Last reviewed: 8 October 2026 · Updated for the 2026/27 tax year

Medical.Accountants by ACCOTAX, ICAEW/ACCA-regulated chartered accountants, London, serving clients across the UK. Over 5,000 clients served.

Key takeaways

  • For incorporating a medical or dental practice, the choice between sole trader and limited company turns on profit level, how much income you draw, and whether your work is NHS employment, private practice or outside-IR35 locum work.
  • For 2026/27 the standard annual allowance is £60,000.

Which accountancy support fits your income?

Start with how you are paid. Different income sources can need different accounts, returns and expense checks.

How you workWhat we checkSupport to explore
Employed or umbrella (PAYE)Tax codes, eligible employment expenses and whether a tax return is needed.Healthcare tax refund support
Genuinely self-employedBusiness income and expenses, Self Assessment and MTD eligibility.Healthcare Self Assessment service
Your own limited companyCompany accounts, Corporation Tax, director income and off-payroll status where relevant.Healthcare limited company accounts
PartnershipPractice accounts, allocated profit and each partner’s personal tax position.Healthcare partnership accounts

Sound familiar?

Problems we fix for self-employed healthcare professionals

  • "My tax return is late and I'm worried about HMRC penalties."
  • "I got a tax bill I didn't expect and don't know why."
  • "HMRC has opened an enquiry and I don't know what to send."
  • "My mortgage lender wants SA302s and tax year overviews."
  • "My current accountant doesn't understand the NHS."
  • "I have a buy-to-let alongside my clinical income."

What it's costing you

Leaving it unfixed is rarely free

Overpaid tax
Unclaimed expenses and wrong tax codes mean paying more than you owe, year after year.
HMRC penalties and interest
Late returns attract automatic penalties, plus interest on tax paid late.
Lost evenings
Hours spent on forms, invoices and spreadsheets after a long shift.

General examples — your position depends on your own figures.

How we solve it

What we actually do for you

Urgent catch-up

We bring overdue returns up to date and talk to HMRC on your behalf.

Tax reserve plan

We tell you what to set aside each month so January holds no surprises.

Enquiry support

We handle HMRC correspondence and prepare the records they ask for.

Simple switching

We contact your old accountant and move your records for you.

How we help

01

Accounts and tax returns

Year-end accounts and Self Assessment or company returns for incorporating a medical or dental practice, filed on time.

02

Fixed-fee advice through the year

Questions answered by your named accountant, without the clock running.

03

Making Tax Digital

Compatible software set up and quarterly updates filed where MTD applies.

04

NHS pension tax

Annual allowance and taper calculations, with Scheme Pays guidance where a charge arises.

What to know before you decide

Incorporation relief

For incorporating a medical or dental practice, the choice between sole trader and limited company turns on profit level, how much income you draw, and whether your work is NHS employment, private practice or outside-IR35 locum work. A company can defer tax on retained profit but adds accounts, payroll and filing costs. We compare both on your figures before you decide.

Goodwill

This is one of the questions we work through with incorporating a medical or dental practice at the start of every engagement. We look at your real income, contracts and records, set out the options in plain English and confirm the work and fee in writing.

NHS contract considerations

This is one of the questions we work through with incorporating a medical or dental practice at the start of every engagement. We look at your real income, contracts and records, set out the options in plain English and confirm the work and fee in writing.

Pension impact

For 2026/27 the standard annual allowance is £60,000. It tapers where threshold income exceeds £200,000 and adjusted income exceeds £260,000, by £1 for every £2, to a minimum of £10,000. NHS pension growth is measured as a defined benefit input, so a pay rise or promotion can trigger a charge without any extra contributions. We run the calculation before the year ends and explain Scheme Pays where a charge arises.

NHS Pension Tax & Annual Allowance for Doctors & Healthcare Professionals

Your questions answered

Is a limited company worth it for a doctor or clinician?

A limited company can suit incorporating a medical or dental practice 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.

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

Want us to check this for you? Get a free review →

How much salary should a medical company director take?

Determining the optimal salary involves balancing personal tax thresholds and National Insurance requirements. Many directors take a lower salary combined with dividends, which benefit from a £500 tax-free allowance. The specific amount depends on your individual circumstances and corporation tax position. Medical.Accountants provides tailored remuneration planning as part of our service.

Check the official guidance · www.gov.uk

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

Want us to check this for you? Get a free review →

How are dividends taxed?

Incorporating a medical or dental practice 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: Limited Company Accounts & Corporation Tax for Doctors & Healthcare Professionals

Want us to check this for you? Get a free review →

What is the best way to extract profit from a medical company?

Profit extraction usually involves a combination of a tax-efficient salary and dividend payments. The dividend allowance is currently £500. Corporation tax at 19% applies to profits up to £50,000, while the 25% main rate applies above £250,000. The most efficient strategy depends on your total personal income and the company's profitability.

Check the official guidance · www.gov.ukWant us to check this for you? Get a free review →

Will my NHS Pension be subject to inheritance tax from April 2027?

Most NHS doctors and many healthcare staff are members of the NHS Pension Scheme. Contributions are deducted through payroll, and locum or private work can count only through the correct forms. High earners should check the annual allowance each year, as pension growth can trigger a tax charge.

Check the official guidance · www.gov.uk

Help with this question: NHS Pension Tax & Annual Allowance for Doctors & Healthcare Professionals

Want us to check this for you? Get a free review →

Can I employ my spouse in my private practice?

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.

Check the official guidance · www.gov.uk

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

Want us to check this for you? Get a free review →

Can NHS work be paid through a limited company?

A limited company can suit incorporating a medical or dental practice 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.

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

Want us to check this for you? Get a free review →

When should private practice income be reported to HMRC?

Medical reports produced mainly for legal, insurance or employment purposes are generally standard-rated for VAT, unlike treatment aimed at protecting or restoring health. If your medicolegal fees exceed the VAT registration threshold you must register and charge VAT on them. HMRC Notice 701/57 sets out the rules.

Check the official guidance · www.gov.uk

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

Want us to check this for you? Get a free review →

What are a company director's legal responsibilities?

Company directors must act in the best interests of the company and ensure all statutory filings are accurate. This includes filing a CT600 within 12 months and paying corporation tax within 9 months and 1 day of the year end. You must also submit a confirmation statement every 12 months. We support directors with these compliance duties UK-wide.

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

Want us to check this for you? Get a free review →

How should doctors structure private practice income?

Most private practices start as sole traders and incorporate once profits are well above personal spending needs. Groups of clinicians may use partnerships, LLPs or a shared company. The right structure depends on profit level, NHS pension membership, who owns equipment and premises, and how fees are billed. We set out the options in writing.

Check the official guidance · www.gov.uk

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

Want us to check this for you? Get a free review →

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.

Check the official guidance · www.gov.uk

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

Want us to check this for you? Get a free review →

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.

Check the official guidance · www.gov.uk

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

Want us to check this for you? Get a free review →

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.

Check the official guidance · www.gov.ukWant us to check this for you? Get a free review →

Quick quote

See what you could save — get a fixed fee in one working day

Three fields. No obligation. A specialist replies, not a sales team.

Packages for your working life

Accountancy packages for dentists

Self-employed income, a limited company, PAYE or a mixture: start with the support that matches how you actually work. We check your status and agree the scope and fee before starting.

Self-employed accountants for dentists packages

For genuine sole-trader income. We prepare your business accounts and Self Assessment, review allowable expenses and explain payments on account.

  • Sole-trader accounts and personal tax return
  • Allowable business expenses reviewed
  • Tax reserve and payment deadline guidance
  • MTD support scoped separately where required

Fixed fee quoted after a review

Discuss this package

Limited company accountants for dentists packages

For clinicians working through their own company. Choose Essential/Compliance, Core/Complete or Growth according to your accounts, bookkeeping and payroll needs.

  • Statutory accounts and Corporation Tax return
  • One director return for salary and dividends from the same company
  • Confirmation statement support; filing fee extra
  • Bookkeeping, VAT and payroll according to your chosen plan

Company packages from £45.83 + VAT / month

Compare company packages

Personal tax return packages for dentists

For employed clinicians, partners and people with mixed income who need a return. We check whether Self Assessment is required and reconcile the relevant income, expenses and pension tax information.

  • Self Assessment requirement checked
  • PAYE and other income reconciled
  • Eligible employment expenses reviewed
  • Pension tax work agreed separately where needed

Fixed fee quoted after a review

Discuss this package

Employment status is determined by the facts, not the package you choose. PAYE, umbrella and partnership arrangements may also apply. A limited company does not override IR35 or off-payroll rules, and not every employed clinician needs a tax return.

Overpaid tax?

Tax refund support for dentists

We review tax codes, eligible professional expenses and overpaid tax, then prepare a claim where you qualify. A refund is not guaranteed; HMRC decides the claim.

£249 + VAT

For refunds up to £5,000, our fee is £249 plus VAT. For refunds above £5,000, add 5% of only the amount above £5,000 to the £249 fee. VAT applies to the total professional fee.

Example: a £6,000 refund means £249 + £50 = £299 plus VAT.

Professional fee, excluding VAT

£249

Ask about a tax refund

This illustrates the fee only, not whether you qualify or how much HMRC will refund. We agree the claim scope and payment terms before work starts.

What's included

Limited company packages — compare what's included

Essential/Compliance

For locums, salaried GPs and dentists with a limited company

from £45.83 + VAT /month

  • FRS 105 or FRS 102 1A statutory accounts
  • Corporation tax return (CT600) and tax computation
  • Confirmation statement preparation and filing support
  • One director Self Assessment return
  • Deadline reminders ahead of every filing date

Core/Complete

For private practice, consultants and associate dentists

from £62.50 + VAT /month

  • Everything in Essential/Compliance
  • Monthly bookkeeping and bank reconciliation
  • Quarterly Making Tax Digital VAT returns
  • Director payroll with RTI filing and pension submissions
  • Quarterly review call on numbers and tax position

Growth

For clinics, dental practices and growing medical teams

from £75.00 + VAT /month

  • Everything in Core/Complete
  • Payroll for up to five employees

Prices exclude VAT. Making Tax Digital quarterly updates available as an add-on. Compare fees

Why clinicians trust us

Chartered accountants who know the NHS

  • ACCOTAX has served over 5,000 clients.
  • Regulated chartered accountants (ICAEW and ACCA).
  • Founded by Waqas Sagar ACA FCCA FMAAT, with 18+ years' experience.

Reviewed by Waqas Sagar ACA FCCA FMAAT

Chartered accountant and founder of ACCOTAX. Last reviewed October 2026.

Get my fixed-fee quote

How it works

  1. 01

    Free call

    A 15-minute chat about your income, structure and deadlines.

  2. 02

    Onboarding in 48 hours

    We set up your records, software and HMRC agent access.

  3. 03

    We handle the rest

    HMRC, NHS Pensions and every deadline, with reminders before each one.

Free resource

Get the deadline calendar free

Tell us where to send it and we'll email it to you.

Your questions, answered

Should I incorporate my practice?
A limited company can suit incorporating a medical or dental practice 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 does incorporation relief work?
It depends on your circumstances. Our team reviews your income, structure and records and confirms the right approach for incorporating a medical or dental practice in writing as part of your fixed-fee service.
How much does an accountant for practice owners cost?
Our packages for incorporating a medical or dental practice start at £45.83 + VAT a month, with Core at £62.50 and Growth at £75 + VAT. The right package depends on your income sources, whether you trade through a company and any payroll, VAT or pension work. We confirm the exact fee in writing before any work begins, so there are no surprise invoices.
Do practice owners need to comply with Making Tax Digital?
Making Tax Digital for Income Tax applies from 6 April 2026 to sole traders and landlords whose qualifying income (gross self-employment plus property income) is over £50,000, falling to £30,000 from April 2027 and £20,000 from April 2028. PAYE salary does not count. Incorporating a medical or dental practice trading through a limited company or a partnership are not brought in yet. We set up compatible software and file the quarterly updates for you.
How do I switch to Medical.Accountants?
Switching takes minutes on your side. You sign our engagement letter, we contact your previous accountant for professional clearance and records, and we take over HMRC and Companies House authorisations. You can switch mid-year; we pick up from the last filed return.

Speak to a specialist today

Leave your details and we'll call you back, or book a free review straight away.

Book a free 15-min tax review

Related healthcare expertise

NHS Pension Tax & Annual Allowance for Doctors & Healthcare ProfessionalsVAT Registration & Returns for Doctors & Healthcare ProfessionalsLimited Company Accounts & Corporation Tax for Doctors & Healthcare ProfessionalsAccountants for doctors and GPs in the UKLocum doctor accountants: tax, IR35 and NHS pensions
Accountants for healthcare professionalsHealthcare tax questions answered

General information for the 2026/27 tax year, prepared from the official guidance linked below. It is not personalised tax or regulated financial advice. Rules and circumstances can change; confirm your position before acting.

Official sources referred to on this page: Companies House filing guidance; HMRC Corporation Tax (GOV.UK); HMRC dividend tax (GOV.UK); NHSBSA annual allowance guidance; HMRC pension annual allowance and taper (GOV.UK); HMRC VAT Notice 701/57 (health professionals); GOV.UK inheritance tax on pensions (from April 2027).

Official guidance

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