Dentist News May 2018


Personal Allowances for 2018/19

For the 2018/19 tax year:

  • The personal allowance is set at £11,850.Those with income above £123,700 will not receive the allowance.
  • The marriage allowance is £1,190.Spouses and civil partners can transfer this to their partner as long as the recipient is not a higher a higher or additional rate taxpayer.
  • The saving allowance is £1,000 for basic rate taxpayers and £500 for higher rate taxpayers.
  • UK Income tax rates remain unchanged for 2018/19 at 20% basic rate, 40% higher rate and 45% additional rate.
  • Dividends rates are also unchanged, remaining at 7.5% if income falls within the basic rate band, 32.5% if in the higher ate band and 38.1% if within the additional rate band.
  • Capital Gains tax annual amount increases to £11,700. However rates of capital gains tax are unchanged with gains chargeable at 10% if with the basic rate band and at 20% thereafter.
  • Corporation tax remains at 19%

For all 2018/19 tax rates please click here

Reporting Expenses and Benefits for 2017/18

Taxable benefits provided in the 2017/18 tax year need to be notified to HMRC by 6 July 2018 on form P11D unless the benefit has been payrolled.

New valuation rules apply from 6 April 2017 where benefits are provided via an optional remuneration arrangement, such as a salary sacrifice arrangement.  The new rules apply except for a limited number of benefits which include childcare vouchers and employer-supported childcare, pension contributions and advice, cycles and safety equipment under a cycle to work scheme or low emission cars (75g/km or less).  Under the new rules the benefit is valued by reference to the salary forgone or the cash alternative offered, rather than calculating the cash equivalent value in the normal rule.

Confidence Grows in Dental Sector

According to the Lloyds Bank Healthcare Confidence Index confidence among dentists is on the up after going into decline last year. Three-quarters of dentists expect profits to improve in the next year, with fewer expecting financial pressures to grow.  Four out of five are planning for growth.  Resistance to corporate ownership is widespread but ultimately it is seen as an inevitability.

The Healthcare Confidence Index 2018 based on the outlook of dentists, doctors and pharmacists can be found here

Have Your Say on Inheritance Tax

A wide ranging consultation into whether the current system of inheritance tax (IHT) is fit for purpose is now open.  New data show that IHT receipts hit a record £5.2bn in the tax year just ended (though it affects less than 5% of estates).  The Office of Tax Simplification particularly wants to hear from those who have concerns about or personal experience of IHT. The consultation closes on 8 June.  Follow the link from to take part and give your views.

Self Employment Talk to Final Year Students

We were delighted to have the opportunity to meet up with final year dental hygiene therapist students at the University of Portsmouth recently. Our senior tax manager James O’Leary spoke to the students about the pros and cons of being self-employed and answered their concerns about paying tax and national insurance. His presentation also included a short demonstration on online accounting using Xero software to record financial transactions and keeping digital records.  




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