Figures from the British Dental Association have shown that almost half of NHS dentists failed to deliver their “units of dental activity” (UDAs) during 2006/07, the first year of the new dental contract. Many now face having to pay significant amounts of money back to their primary care trusts (PCTs).

As part of their contract, dentists agreed to a level of UDAs and were paid accordingly. Dentists who delivered less than 96 per cent of their UDA target fell under the threshold at which their PCT can claw money back.

Independent research by DPAS, private dental plan administrators, found that 11 per cent of dentists were between 15 per cent and 25 per cent short of targets, and another 11 per cent were more than 25 per cent short.

For those dentists who have under-delivered by four per cent, the contract allows this shortfall to be made up by 31 March 2008 at the latest. They will have to do 4 per cent more work for no more money as well as coping with this year’s UDA contract target. For those who fell a little further short, their year two revenue is reduced by the year one clawback, money already spent on last year’s running costs and drawings. Dentists who fell significantly short will find they have no option other than to agree with their PCT to accept a smaller commitment for the number of UDAs for years two and three and beyond with the inevitable financial effect on their NHS earnings.

No mention has been made of the dentists who over performed on their targets!

Can we help?

In the light of this it is extremely important to make sure that you maintain a close control over UDAs to ensure that whatever you have contracted to do is done. Also you should make sure your accountant understands the terms of your contract. If you have failed to deliver on your UDAs and your PCT is intending to claim the money back you could, under the ‘Payment on account’ regime operated by the Revenue, inadvertently pay 60 per cent of the clawback in tax in January 2008. Any clawback needs to be reflected in the right accounting year in order that the tax effect is also correctly reflected.