Running a dental practice comes with unique challenges, not least managing your finances and ensuring your tax return is as efficient as possible. One of the most effective ways to reduce your tax liabilities is by making the most of your allowable expense claims. But knowing what you can and can’t claim isn’t always straightforward.

This is where dental accountants can make a real difference. By working with specialists who understand your industry, you can ensure that no eligible deduction is overlooked, helping you save money and improve your practice’s financial health.

What expenses can dentists claim?

As a dental professional, you can claim tax relief on a variety of business expenses. However, HMRC has clear rules: you can only claim for costs that are “wholly and exclusively” incurred for business purposes. Common examples include:

• Staff salaries and training costs
  Salaries for dental nurses, hygienists, and reception staff are deductible. Training courses related to your practice are also allowable, provided they maintain or improve professional skills rather than teach new ones.
• Clinical supplies and equipment
  Materials like gloves, masks, and dental instruments are essential for your work and qualify as deductible expenses. The cost of larger equipment such as X-ray machines may be claimed under capital allowances.
• Premises costs
  If you own or lease your practice premises, expenses such as rent, utilities, and maintenance are deductible. For practices run from home, you may claim a proportionate share of household costs.
• Professional fees and subscriptions
  Membership fees for bodies like the General Dental Council (GDC) or indemnity insurance premiums are allowable. Accountancy fees for managing your business finances can also be claimed.
• Travel and vehicle expenses
  Business-related travel costs, whether for visiting patients or attending conferences, are deductible. If you use a personal vehicle for work, you can claim either mileage or a proportionate share of vehicle running costs.

Why work with a dental accountant?

While the basics of expense claims may seem simple, dental practices often face situations that require more specialised knowledge. A dental accountant can help you navigate these nuances and ensure you’re claiming all eligible expenses. Here’s how we can help:

1. Expert advice tailored to your practice
   We understand the specific costs and challenges dentists face, from equipment depreciation to the intricacies of NHS versus private income. This allows us to spot opportunities for deductions that general accountants might miss.
2. Accurate record-keeping
   Maintaining thorough records of your expenses is essential. We’ll guide you on the best ways to track and categorise your costs, making your tax return process smoother and less stressful.
3. Minimising audit risks
   Expense claims that fall outside HMRC’s rules can trigger enquiries. By working with us, you can be confident that your claims are accurate and fully compliant.
4. Strategic tax planning
   Beyond expense claims, we’ll help you plan for the future, from managing cashflow to optimising your tax position as your practice grows.

Common pitfalls to avoid

Many dental practices miss out on tax relief simply because they’re unaware of what they can claim. On the other hand, claiming for ineligible expenses – whether through misunderstanding or poor advice – can lead to costly penalties.

Some areas where we frequently see mistakes include:

• Mixing personal and business expenses
  For example, a vehicle used partly for personal use must have its expenses apportioned accurately.
• Overlooking capital allowances
  Many dentists fail to claim for significant investments, like surgery refurbishment or IT systems, because they don’t understand how capital allowances work.
• Under-claiming on home office costs
  If you perform administrative tasks at home, you may be entitled to claim part of your household expenses, but only the proportion used for business.

How we help you stay on top of expense claims

When you work with us, you’ll receive clear guidance on what you can claim, along with ongoing support to keep your finances organised. Our proactive approach means we’ll highlight potential savings opportunities and ensure your tax return is completed accurately and on time.

We also stay current with changes to tax regulations, ensuring you don’t miss out on new reliefs or violate updated rules.

Next steps

Maximising your expense claims isn’t just about reducing your tax bill – it’s about building a financially healthier practice that’s better equipped for growth. With the right support, you can focus on what you do best: providing excellent care to your patients.

If you’d like to find out more about how we can help your practice, contact JCS Accountants today.