Dental Corporates

How incorporation can help your business become more tax efficient

In the medical and dental world, practices are often still set up as partnerships, with many individual professionals operating as sole traders. However, there may be advantages associated with structuring your medical or dental practice as a limited company: these include the ability to enjoy substantial tax savings and a range of other benefits.
Incorporation needs to be done properly, with expert professional advice right from the start, in order to maximise the tax-saving benefits.

What is incorporation?

Incorporation is the process whereby the business ownership of an existing sole trader or partnership is transferred to a limited company. Any medical or dental practice is effectively a business and can become incorporated.
The actual set up of a limited company for dentists and doctors is not difficult. In fact anyone can do it by registering a company name. However, it is important that consultants and practice owners take appropriate professional advice before they proceed, in order to maximise the efficiency of the enterprise from a tax perspective.

What are the benefits of incorporation?
Practicing within a limited company structure generally leads to a number of benefits for the principals:

– Significant savings – A professionally executed incorporation should typically yield an
overall annual tax saving.
– Limited liability – Shareholder liability is usually limited to the share capital that they
introduce.
– Future prospects – A limited company can often make it easier for dental practitioners to
sell their practice on retirement. Incorporation also releases more funds for retirement
planning.

Incorporation of your NHS Dental Contract

Did you know that since PCT’s was abolished and Area Teams came to effect, almost everybody could now incorporate their NHS Dental Contract as long as some minor criterias are fulfilled.

Click to read article about Incorporation of NHS Contracts