The Budget 2015 – a few things for Dentists to consider

Incorporation: Restrictions over the amortisation of goodwill on incorporations after 8 July 2015; the implications of this will be higher corporation tax bills for any Dentists now thinking of incorporating.

Employee Allowance: This is increasing to £3,000 (from £2,000) with effect from April 2016 for employers with greater than one employee. However, if your practice has greater than 50% NHS activity, unfortunately you will not be able to claim this.

Dividends: Again, from April 2016, the first £5,000 of dividends received will be treated at 0% for everyone; the following rules then apply:-

Basic rate tax payers 7.5%
Higher rate tax payers 32.5%
Additional rate tax payers 38.1%

Annual Investment Allowance: The 100% annual investment allowance available on equipment, plant and machinery will reduce to £200,000 from 1 January 2016 (previously it was expected to fall to £25,000), and will be permanently set at this figure.

Additionally, not budget related, just a reminder – that the SD86C for 2014/15 should be provided and available online to all NHS scheme members, i.e. Principals and Associates at the beginning of August.