A global launch webinar, primarily aimed at the orthodontic community, will be held next week to show off the capabilities of the latest version of Align’s product.
As a dentist reading this, you will be fully aware of the game-changing potential of the intraoral scanner in patient communication.
The enhanced capabilities of the Lumina (for orthodontics first and for the rest of you later in the year) will accelerate the role of the IOS in every aspect of dentistry – the landscape can never be the same again.
I’m not sure of the cost of the new Lumina, but I can only assume it will be north of £35k.
An important part of considering the purchase of a capital asset like an IOS is to consider what the effects of the tax relief you get and on your savings will be:
When planning an IOS asset purchase, these are my top tax planning points you should consider:
- What rate of tax relief will you get? – A company can be 19/25/26.5%, Self Employed can be at 29/42/47/62%, or if you are in Scotland, 28/29/30/44/47/51/65%
- If you are self-employed and in Scotland, delaying your purchase until after the new tax year starts on 6.4.24, when the top income tax rates increase, may produce a greater tax saving.
- If you purchase it, the whole purchase cost can be deducted from your profits in the accounting year. However, it could be beneficial not to do this and claim an annual writing-down allowance to consistently get tax relief at only your highest rates over multiple tax years.
- If you are using finance, your interest and charges will also be tax-deductible
- If you are leasing only, your rental payment will be tax deductible; it is the same if you purchase on finance and are self-employed using the cash basis of accounting. The tax relief is given over the term of your lease.
- If you plan to trade in your old IOS, anything you get for it second-hand will be income you will need to account for; this could lead to an increase or decrease in your taxes depending on how you originally claimed the tax relief.
- Talk to your tax adviser and ensure they are getting you the best tax relief possible; if you don’t have one, getting a good one will save you their fees many times.
