Dental expenses are those necessary costs associated with the practice of dentistry, such as materials, services and laboratory fees.
In the United Kingdom, there are specific tax reliefs available to dentists to help them manage their practice costs.
However, come the end of the tax year when filling out a tax return, dentists will need to ensure they are claiming back all of their allowable expenses that have been accrued. Dentists will need to ensure they are claiming back as many of their allowable expenses as possible, whilst also not claiming for things which do not fall under that jurisdiction.
Understanding exactly what can or cannot be claimed is often not a straightforward process, thus hiring a well reputable dental accountant can ensure the process is smooth and efficient.
This article will discuss what dental expenses can be claimed by dentists in the UK, which may not be apparent from the outset.
Essential Costs
Essential costs such as lab fees, general dental council (GDC) fees and indemnity insurance all fall under the bracket of which dentists can claim money back.
HMRC will allow dentists to claim some of this money back from their tax return, however only if self employed. A dentist’s sole income must come from being self-employed.
Other essential costs which can be claimed back are dentistry and stationary equipment, protective clothing and printing costs.
If a dentist uses their personal computer or telephone for business, they can claim back the minutes used for business purposes. However, any other usage will not be tax-deductible.
Training Costs
Dentists can claim back tax on any continued professional development (CPD.) This covers the costs of courses, travel and essentials whilst away for training. This can apply to any training abroad also, however, it must remain training related.
Dentists will not be able to claim back tax on any training that is not related to their industry. It must remain industry relevant.
Travel Expenses
Claiming back tax for travel expenses is not a simple task for dentists, in comparison to some other professions.
Dentists are able to claim back on any work-related trips, such as meals, accommodation and travelling. This could be travelling from two different places of work or travelling to a temporary workplace from home. However, ordinary commuting cannot be tax-deductible, which can often cause some confusion when doing tax returns.
For dentists, claiming back on travel expenses can often lead to confusion. Therefore, it can be beneficial to seek the appropriate help on this matter when required.
Working from Home
If working from home, dentists are able to claim back certain expenses on bills. For example, percentages on lighting, heating and water bills are eligible. As well as a percentage of their council tax.
However, if working from home as a dentist, they must register part of their home as a company. This ultimately means that they will technically be renting, thus having rental income on their tax return. An advantage of this is that rental income is tax deductible against company profits, as well as having no national insurance due.
Professional Membership Fees
Dentists are able to claim back money on any fees they pay to professional bodies, whether an annual subscription or membership. There is an exhaustive list of the organisations which are eligible on the government website.
Conclusion
As discussed in the article, there are many expenses that dentists can claim back at the end of the tax year. However, often not all of the expenses are routinely simple.
Dentists should consult with a reputable accountant if left unsure of what can and cannot be claimed as an expense.