What can you claim tax relief for as a dentist? The short answer is that HMRC will allow you to get tax relief for anything that you incur or spend on that relates directly to your trade as a dentist.
So, if you buy dental equipment or go on an education course, these are things that are easily identifiable as directly related to your trade.
You can also claim on things such as mileage if you are travelling to see patients or between practices, but not your regular commute from home.
We have listed below common key expenses you can claim for in your self assessment tax return.
- Travel for business purposes at 45p/mile, and this includes travel to any courses or visiting accountants etc. We would suggest keeping a diary of business travel through the year so that you don’t have to do all of this at once at the year end. You cannot claim mileage to a regular place of work but can claim for travel to other dental practices where this is irregular
- Alternatively, you may put the cost of your car through your business, along with the costs of repairs, MOTs, servicing and fuel receipts. However, we would be required to remove the non-business usage proportion of these costs. For example, if you estimate that you have used your vehicle for 20% business use and 80% private use, then we would disallow 80% of these costs. The 20% that has been claimed may still be more than the alternative option of claiming mileage at 45p/mile.
Click to read about buying a car through a limited company.
- Any other business travel costs such as trains/taxis etc.
- Training and Course costs that are to ‘update pre-existing knowledge’, such as annual update courses etc. Course costs that enhance your technical knowledge cannot be claimed as a business expense. You have to tread carefully here as we have seen clients get into trouble with HMRC on this aspect.
- Subscriptions to the BDA, GDC etc.
- Professional indemnity insurance
- Legal advice relating to business matters
- Cleaning/laundry costs
- Printing, postage and stationery for business purposes
- Any dental materials purchased
- Accountancy costs!
- Any website or marketing costs you might incur
- A proportion of your telephone bills relating to business use
- A proportion of your home bills due to having an office at home to administer your business and put accounts records together (the HMRC flat rate is £4/week but this may be more depending on evidence provided)
- Loupes or other equipment that you will use for the purpose of your business
- Cost of study texts that you previously purchased as you will refer to these for the purpose of your business
- In addition, your business could ‘buy’ from you the cost of your personal laptop and printer that you use to administer the business if you have these
The above list isn’t ‘exhaustive’ so please feel free to ask if there is an expense that you have paid and are unsure whether you can claim. There is no additional fee for asking about these.
Further Information on Dental Accounts and Tax
To find out more about how you can save time, money and effort on your accounts and tax when you automate your finances with Samera, book a free consultation with one of our accounting team today.
As dental practice owners ourselves, we know what makes a clinic tick. We have been working with dentists for 20 years to help manage their accounts and tax. To find out how we can help your practice’s finances, book a free consultation or contact us today to find out more.
If you’re a dental associate looking to save time, money and effort on your accounts and tax then we want to hear from you. Our digital platform takes the hassle and the paperwork out of accounts. Book a free consultation or contact us today to find out more.