Geoff Long’s top tips for dentists to save tax
Tax can be a complex and daunting area. Here, specialist dental accountant Geoff Long looks at some of the best ways to make sure you are always only paying what you need to.
It is one of the biggest advantages of hiring a specialist dental accountant. If they are good, they will have a detailed understanding of exactly where you can save on your tax bills. Here at my firm, Long & Co. we have a skilled and experienced team who have helped hundreds dental clients over the years to do just that.
So, here are just a few tips on making sure you save when it comes to tax return time.
Take all of the deductions you’re entitled to
A good specialist accountant should be able to use their experience with their other dental clients to help you to see where you can save. One of the key areas to focus on is around understanding what exactly you can claim tax relief on.
Dental professionals are able to claim tax relief on a wide range of items and services. These include everything from the subscriptions you pay to professional organisations like the British Association of Dental Nurses, through to relief on the loans you might have taken out for equipment for your practice. So, talk to your accountant and make sure they have the full picture of exactly where and how you can get tax relief.
See if you can save by entering into a business partnership with your spouse or civil partner
If you are married or are in a civil partnership then there is a relatively simple way to save on the tax bill you get from the Inland Revenue. As long the highest earner in the partnership is still paying tax in the 20 per cent tax band, you will be able to take advantage of the Marriage Allowance. This arrangement allows the lower earner to transfer up to £1,150 to the higher earner in order to cut the amount of tax they pay – potentially saving you at least couple of hundred pounds every tax year.
Support a good cause
Donating to charity is a great way to give something back to society. But aside from this, there is also a way to get a small tax rebate on each donation you make. Many dentists are in the higher tax rate (of 40 per cent and over) and if this is the case for you then you can claim back the difference between the higher rate you normally pay and the basic rate of 20 per cent when it is time for you to submit your annual tax return.
Don’t be late with your tax return
Finally, one of the easiest ways to keep your tax bill down is simply to make sure you submit your tax return, and pay, on time. So, plan ahead and provide your specialist dental accountant with all of the relevant information they need in order to prepare your tax return in a timely manner. Then, once everything is completed and submitted on time, make sure you promptly pay the tax you owe to avoid any fines or late charges.
Geoff Long is a specialist dental accountant based in Stevenage, Hertfordshire. He advises on a wide range of dental tax issues and regularly writes for the dental press. Geoff has over 20 years’ experience with dentist’s accounts and is recognised for his proactive approach to dental taxation and business problems.
Geoff can be contacted on 01438 722224 or email firstname.lastname@example.org