Tax Deductible Expenses

The Probe - August 2006

Most dentists claim tax relief on certain expenses, but you would be surprised how many dentists do not claim relief on all their genuine business expenses. The outcome of this is you may be paying too much tax!
The rules for employed dentists are extremely strict. The legislation provides for a deduction to be made only in respect of expenses, which are wholly, exclusively and necessarily incurred in the performance of the duties of the employment or office.

However if you’re self employed the rules aren’t quite as strict. The best way to think about this is to class yourself as a business and any items purchased for your business, can attract tax relief.

Let’s look at a few ideas: -

Motor Expenses

domiciliary visits where you use your own car

Telephone (including mobile)

calls to the laboratory or other business related phone calls, & a percentage of your monthly line rental are generally classed as business expenses

Practice

such as protective glasses, tunic and laundry costs

Use of home as office

in some circumstances you can claim a percentage of your home bills

Computer and Software

many dentists purchase computer equipment that is used for storing specific data

Studying

CPD, business or dental events or courses, examinations, subscriptions and levies, course books, travel to courses and accommodation. However claiming course fees is not always straightforward so be careful.

Pensions and Life Assurance with Tax Relief

for higher rate taxpayers you can claim a 40% reduction in the premiums!

Remember if you don’t want to get on the wrong side of the HM Revenue & Customs always best to seek specialist advice.