The advice process for dentists is largely dependant on the level of past and future NHS income and the proportion of private income.  Again we first evaluate the position with the NHS scheme, then look to build further planning if and where required. It is also important to consider the structures and options available for the income sources, for instance some dentists have set up Dental Body Corporate (DBC’s) which can have benefits when arranging a practices affairs in the most tax efficient structure.  There are however, issues with the impact of remuneration on the ‘pensionable income’ and HMRC have recently confirmed the situation in respect of the Salary/Dividend package.

When considering the NHS pension, it is vital that our clients understand how their deemed contribution is calculated. Particularly in light of recent pension legislation changes to the annual allowance and the effect this can have on income tax planning.