Customers and new inquiries always ask me, ‘Should I have a Company or be a sole trader?’ I’m writing a guide to answer this question and will share some inside information about what I discovered. First, I have looked at small businesses with profits of up to £50k. Second, I have looked at small businesses…
The BUDGET 2024 falls on Wednesday, March 6th, and is crucial for accountants and tax advisers like us. Having observed several budgets throughout the years, on budget day, this is typically what we do at SmallBiz Accounts: Once we have thoroughly examined the ‘devil in the details’, we will release the Budget News 2024 for…
When the income of self-employed dentists and employed dentists surpasses £100,000, they find themselves subject to a marginal tax rate of 60% and 63% in Scotland. This occurs because their tax-free personal allowance starts to diminish, resulting in a 50% increase in their tax rates. This increase can be offset by making a pension contribution.…
I read the excellent Extreme Business blog by Chris ‘Coach’ Barrow. Chris recently published his table of Key Performance Indicators (KPIs), which every dental practice should benchmark. We use these to benchmark our dental practices, too. In his post on 27th February 2024, Chris highlighted how increasing wage costs in dentistry as a % of…
I recommend this series of dentistry webinars to any dental practice owners or anyone considering purchasing a practice and wanting to gain more confidence in their numbers. I have been on a Chris Barrow finance course, which was excellent; it gave me a real insight into the number of dentists I need to focus on,…
We’ve been working with a new dental associate customer who has recently moved from a sole trader dentist to a limited company. He has brought his wife into the limited company to take advantage of her lower tax rates. Keeping his and his wife’s dividends and salaries at a rate of £50,000 annually means he…
As a tax adviser and accountant, my main objective is to optimise tax efficiency for my customers. However, there are instances where unexpected opportunities arise that can provide financial benefits through indirect tax-related means, such as the possibility of receiving free childcare as a Dentist. In a conversation with a recently joined dentist, they mentioned…
I speak to many people who ask, “Should I stop child benefit payments because my income is above £50,000?” as I know I’ll have to repay it. This £50,000 isn’t a cliff edge like tax bands. Instead, it tapers off gradually, as we say in the tax world. It stops at £60,000 and is only…
Yesterday, I talked to a car finance broker arranging finance for one of our dental practice customers. We had previously explained to them the cheapest way to run an electric vehicle was using their company, and they were keen to get a new electric car. Our customer has been trading for less than 2 years…
Self-employed Dentists, be aware of the hidden 62% marginal tax rate that could affect your income. As your income tax allowance gets withdrawn, you may experience a steep 60% (61% in Scotland) marginal tax rate. This means that for every additional pound you earn beyond the £100,000 threshold up to £125,140, you will effectively pay…