**** This article has been amended on the 15th of March ****

How will the Spring Budget affect you?

On 8^th March 2017, Chancellor Philip Hammond presented his first – and allegedly last – Spring Budget, outlining the UK’s plans for spending and borrowing as well as proposed changes to taxation. As always, the Budget was met with mixed reactions, though it would be fair to say that it was moderately upbeat considering recent events and the uncertainty surrounding Brexit.

Among other things, the Chancellor allocated extra money to health and social care services, free schools and addressed housing, transport and domestic violence issues, so the Budget did have many redeeming features. The fact that the UK was the second-fastest growing economy in the G7 in 2016 and the growth forecast for 2017 has been raised from 1.4 per cent to 2 per cent is also extremely good news. What many dentists will want to know, however, is how will the recent announcements affect them?

Firstly, the Government has imposed a new reform that will decrease the tax-free allowance on share dividends from £5,000 to £2,000; in other words, shareholders and company owners will benefit less from receiving a dividend. If you operate as an incorporated business you may well be affected by this, though it is likely the change will be relatively insignificant to your overall take-home.

Another key measure that was introduced to tackle tax avoidance and aggressive tax planning, is the plan to apply a 25 per cent transfer charge to qualifying recognised overseas pension schemes. Combined, these measures will make mitigating tax much harder moving forward. 

The good news is that personal tax-free allowance will increase this year to £11,500 from £11,000 as planned, and again to £12,500 by 2020. Disappointingly, business rates relief will remain the same, but after the amount of changes announced in 2016 we can’t be too shocked at the Chancellor’s decision. What he did say on the matter is that no business losing small business rate relief will see their bill increase by more than £50, though that will likely prove to be a small comfort for those hoping for bigger change.

Of course, there are other positives to have come out of the Spring Budget, including the fact that vehicle exercise duty rates and the HGV Road User Levy has been frozen for another year. With fears rising about potential increases in dental materials due to Brexit, no change in this area is the best that can be hoped for, because once their prices rise, so will yours!

Regulation concerning alcohol, tobacco and sugar should also be celebrated, as this could help to improve patients’ oral health. Tobacco, for instance, will rise by 2 per cent above Retail Price Index (RPI) inflation, which will cost patients an extra 35p for a packet of 20 cigarettes. As for beer, cider, wine and spirits, costs will increase in line with RPI inflation, which will result in a rise of 2p on a pint of beer, 1p on a pint of cider, 36p on a bottle of whiskey and 32p on a bottle of gin.

Perhaps one of the most victorious announcements of all is that the much anticipated sugar tax will go ahead as planned at a rate of 18p per litre where there is more than five grams of sugar per 100ml, and 24p per litre where there is more than eight grams or more of sugar per 100ml. Should this move prove successful, the profession will hopefully begin to see improvements in children’s oral health.

One of the bigger talking points to have come from the Spring Budget is the Government’s U-turn on plans to increase Class 4 National Insurance Contributions for self-employed people. Originally meant to increase from 9 per cent to 10 per cent in April 2018 and again to 11 per cent in 2019, it has since been dropped after the Chancellor faced backlash by Conservative backbenchers. The proposal to scrap Class 2 National Insurance in April 2018 is still set to go ahead.

For all of the drama that occurred afterwards, though, it wasn't a particularly groundbreaking Budget, nor will it have a huge impact on dentists. There will be fewer opportunities to mitigate tax moving forward, but with National Insurance Class 4 rates now set to remain the same, it is not as bad as it could have been. If you are thinking of maximising the legitimate tax reliefs available or simply want to find out more about how the Budget could affect you, get in touch with your Independent Financial Adviser.

For more information please call 0845 345 5060, email This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.money4dentists.com

“Purchasing a practice and sourcing finance is both demanding and time consuming, so it is always good to get help from a team of experts,” says Zamir Raza, who recently purchased Serenity Dental Care. “Indeed, I would never have been able to do it alone.

“DE Finance helped me with the purchase of my practice from helping me to understand how the finance would be arranged, to sourcing the best interest rate, introducing me to the lenders and securing funding.

“Plus, because the practice was one that Dental Elite had listed, the sales and acquisition department provided additional guidance on how to complete the CQC registration forms.

“There were complications, but it wasn't DE Finance’s fault, it was delays caused by issues with due diligence and CQC registration, both of which were dealt with by the solicitors.

“I’m extremely happy with the rate that I secured as well as the service that I received – I would definitely recommend DE Finance.”

For the full interview, visit www.dentalelite.co.uk or contact DE Finance today to see how the team could help you.

For more information contact Dental Elite. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

Dental Elite is pleased to announce that it has been awarded membership to the National Association of Commercial Finance Brokers (NACFB).

Having gone through a rigorous process, Dental Elite is now a member of the UK’s trade body for business finance brokers – an accolade that only a few other companies within the dental sector can boast.

With this associateship, Dental Elite can continue to offer its clients an excellent service with the additional support of the NACFB, which exists to safeguard both its members and their clients against fraud and restrictive practices.

Its aim as one of the largest agencies in dental recruitment, finance, valuations, acquisitions and sales is to ensure that its clients receive a transparent, impartial and ethical service that ensures the optimum outcome is achieved.

For more information, contact the team today.

For more information contact DE Finance. Visit www.dentalelite.co.uk, email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 545 900

With the new tax year looming, it is important to re-examine how the latest Budget – the first Conservative Budget for 19 years – will affect the dental profession. Having had time to evaluate the pending changes, it seems that dividend taxation could have the largest impact, especially those drawing dividends from their own limited company.

As dividends from UK shares are currently paid for with a 10% tax credit, previous years have presented incorporations with opportunities for reducing tax. From 2016, however, all dividend income will be treated as untaxed income and the current system will be replaced with a tax-free dividend allowance of £5,000 with higher taxes on income above that. What this ultimately means, is that practices will see a 7.5% increase in tax on any dividend income above the £5,000 tax-free allowance.

Although this is an aspect that will undeniably affect incorporated practices and their overall income, for those considering the decision to incorporate in the future, it could be pertinent to seek out professional financial advice to determine if it is the right decision to make.

In regards to dividend income received on Stocks and Shares ISAs and private pensions, however, thanks to the 1997 Budget, there will be no tax consequences introduced. This is good news for private pension protection, especially as tax relief claims will shortly be changing from £40,000 to £10,000 for dentists with incomes over £150,000 per annum.

The changes to employment allowance, income tax and inheritance tax are much more promising. Indeed, as from April, the employment allowance will be increased from £2,000 to £3,000 for all private practices. With the additional increase of the income tax higher rate threshold from £42,385 to £43,000, the Budget does present potential benefits to practices and dentists alike.

This is especially true where inheritance tax (IHT) applies. With the transferable main residence allowance set to gradually increase from £100,000 in April 2017 to £175,000 per person by 2020/21, this may prove to be a comforting thought for dentists and their families who have concerns about the effects of the Budget.

All in all, the Budget has revealed some interesting changes. While George Osborne and his fellow Conservatives expect to see public finances run at a surplus from as early as 2019, it would be prudent for all practices and dentists to stay cautious of what the future holds. Ultimately, until the changes take full effect it is uncertain what financial downfalls and benefits may occur, which means for now, preparation and calculation are very much advised.  If you are unsure of how the Budget affects you, contact money4dentists today.

For more information please call 0845 345 5060, email This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.money4dentists.com

Are you offering your patients finance options?

In this day and age, most people will expect credit – particularly for large-scale purchases. As elective dental treatments grow in popularity in the UK, this expectation will certainly extend to your service.

But these days, gaining and maintaining  consumer credit authorisation from the Financial Conduct Authority (FCA) is a lengthy, time-consuming process – one that many busy dental practitioners will not have time to complete.

Which is precisely why Chrysalis Finance is the perfect option.

Its unique service allows you to become Appointed Representatives – essentially allowing you to offer consumer credit through Chrysalis Finance’s existing authorisation: it’s quick and easy and allows you to offer your patients more options.

Simply sign up for a nominal monthly fee and let the expert team at Chrysalis Finance deal with all the regulatory management and FCA reporting. All you need to do is continue providing your patients exceptional, affordable dentistry!

As the UK’s ONLY licence-free provider of dental finance, Chrysalis Finance is changing the way practices offer credit. To find out more, contact the friendly team today.

For more information about Chrysalis Finance call us on 0333 32 32 230 or visit www.chrysalisfinance.com