Dental practice owners across the UK are being advised to check whether they are eligible for tax reliefs as many are missing out on potential savings.
Healthcare professionals do not fully realise that they are entitled to benefits under the government’s Capital Allowance scheme, according to Paul Hulme, director at Midlands-based DJH Accountants.
But the scheme is a legitimate way for practices to alleviate some of the financial burdens associated with improving facilities, for example. Therefore, thousands of pounds could be being forfeited in unnecessary tax payments, which practices could claim back.
With continual advances in technology and the ever-growing need to update business assets such as equipment and machinery, investing in the latest tools and providing a budget for things such as dental staff training are essential for practices looking to grow.
Under the scheme, practitioners can carry out some of these measures without having to dip into their own budgets. Taking advantage of it will not only provide tax relief on current expenditure, but will also enable practices to invest money back into this business.
“The benefits of Capital Allowances for healthcare professionals are amongst the most valuable forms of tax recovery and can typically save practice owners up to 30 per cent of the cost of a new surgery or building,” Mr Hulme said.
Tax reliefs can take a variety of forms – for example, practitioners may be able to write off the costs associated with assets purchased for use within the practice. Any equipment or specialist tools used in the day-to-day running of the business, including such things as office furniture, computers and telephone system upgrades, are eligible for recovery.
In addition, refurbishment and renovation work – such as improvements to waiting room areas or treatment room enhancements – would also qualify for tax breaks under the Capital Allowance scheme.
Practices looking to reduce their carbon footprint and adopt green measures should also make note of the scheme’s 100 per cent tax relief on low carbon or energy saving equipment.