NASDA sees some good news for dentists in budget
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- Published: Thursday, 24 March 2011 09:16
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| George Osborne’s Budget brought a modest amount of good news for dentists, according to the National Association of Specialist Dental Accountants (NASDA). Mr Osborne confirmed that he regards the 50 per cent personal tax rate as a temporary measure and a few high earning dentists who have incorporated are likely to welcome the reduction in tax payable on profits. |
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George Osborne’s Budget speech on Wednesday, March 23rd was, at 56 minutes, one of the shortest in the last 150 years and it brought a modest amount of good news for dentists, according to Peter Howard and Paul Mckay of NASDA National Association of Specialist Dental Accountants firm Booth Ainsworth.
Mr Osborne confirmed he regards the 50 per cent personal tax rate as a temporary measure and a few high earning dentists who have incorporated are likely to welcome the reduction in tax payable on profits.
In summary, the key changes are:
· The rate of corporation tax payable on profits exceeding £300,000 will fall to 26% from 28% on 1 April 2011 and to 25% from 1 April 2012. The small companies’ rate, payable on profits of up to £300,000, will fall to 20% from 21% on 1 April 2011.
· George Osborne confirmed that he regards the 50% personal tax rate as a temporary measure, although it is unlikely that there will be any changes to this rate in the current Parliament.
· There will be 21 new Enterprise Zones. The Government will offer up to 100% business rate discount for 5 years to businesses located in enterprise zones and further tax relief for capital expenditure undertaken by businesses operating in Enterprise Zones. Full details have yet to be announced, but this could have an important impact on the siting of new surgeries.
· There will be some structural reforms to tax relief for capital expenditure relating to the definition of short life assets where the time limit will increase from 4 to 8 years. This could be of particular relevance to the tax treatment of new surgery equipment.
· A review has been announced to consider the merging of the current tax and National Insurance regimes into one. This review is unlikely to be concluded for several years, but could have an impact on the cost of employing staff as well as overall personal tax rates.
NASDA tax specialist, Bob Cummings commented: “It’s possible that high earning self-employed dentists are likely to consider incorporation. As always, our advice is to speak to a NASDA accountant as it is not just about tax savings. It is always advisable to speak to a specialist who will be able to discuss your plans with you and how incorporation might affect your future.”
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