Dentist News - October 2017                   

National Association of Specialist Dental Accountants and Lawyers (NASDAL) Practice Goodwill Survey

• Results from the quarter ending 31 July 2017 shows a buoyant market. However it suggests there may be a geographical divide opening up across the UK.
  
  
• In terms of deals done, there was an overall increase in average goodwill value of 4%.
  
  
• Very high sales values were achieved in areas including London and the South East with over 200% of gross fees for NHS practices not untypical. However, this return is not always being seen in other area of the country and away from major conurbations.

Tapered Annual Allowance - Urgent Action Required

Since April 2016, the maximum amount that can be paid into pensions, without triggering a tax charge, is a variable figure dependent on your total income, level of pension growth and changes to inflation.

The amount that can be contributed could be as low as £10,000 per annum, with any amount above this taxed at your highest marginal rate – in many cases 45%!

The Office of National Statistics confirmed inflation for September 2017 was 3%.

This is critically important as the September inflation rate determines the dynamising factor applied to pension, resulting in the pension growing much faster.

This accelerating increase in the pension growth will result in anyone with total income (not just NHS income) of
more than £110,000 being impacted by the Tapered Annual Allowance, in some cases significantly.

It is difficult to predict the scale of the problem in advance or give a general rule of thumb approach, but our advice, because of the increase in inflation, is to seek immediate advice if, in the current tax - year, you expect your total income to be £110,000 or higher.

This article has been kindly contributed by Tempus Wealth who are Independent Financial Advisers specialising in advice for medical and dental professionals.

Contact: Jonathan Foster tel 023 9251 8200 or email jon.foster@tempus-wealth.co.uk

The General Data Protection Regulation (GDPR) Impact on Payroll

Employers and staff responsible for payroll should be aware of major compliance changes taking effect from May 2018.

Failure to conform to the new data privacy laws may incur hefty fines. If you are a dental practitioner who employs staff there will be a significant increase in your obligations and accountability.

Meeting the new regulations will require a fundamental review of your payroll and pensions systems and the data you collect and process about your staff.

Also, if you use any third parties such as a payroll bureau or IT support company, the contractual basis under which you share information is also very likely to require amendment.

You will need to be satisfied that they have robust and compliant data protection procedures of their own

Cyber Security Guide for Business

A new guide to help small business owners improve cyber security is available from the National Cyber Security Centre. It is estimated that almost half (45%) of small businesses were hit by a cyber security breach or attack in the past year.

The Cyber Security: Small Business Guide contains five steps which aim to significantly reduce the chances of your business becoming a victim of cyber crime. There are also links to further reading should you require more information and a useful infographic to download of simple low cost techniques that can help small businesses to protect themselves from the most common cyber attacks.

Tax Tip - Rewarding Your Employees

As the festive season approaches, did you know that an annual staff party could qualify as a tax
- free benefit for your employees? Certain conditions need to be met, including:

• The total cost per head does not exceed £150 (including VAT,transport and accommodation)
  
  
• The combined cost of multiple events does not exceed £150 per head, per year
  
  
• The event is held primarily for the purpose of entertaining staff
  
  
• The event is generally open to all employees in that location

   

For more information about the topics discussed or to find out how our services can benefit you, contact us on 02392 484 356.