Many locum dentists choose to operate through a Limited Company structure as this can make business and financial sense.
Even in cases of self-employment, there are a number of expenses that can be claimed against general work-related costs. A locum dentist operating through a limited company could claim further expenses relating to additional business operating costs.
Without a fair bit of experience navigating through the world of expenses, it may be difficult for you to know exactly what you can claim for. This can leave dentists not claiming for all of their allowed expenses, which can be unfavourable to a small business and it is something that can be avoided with some expert know-how. Even better news is that professional accounting fees are also tax-deductible expenses.
We’ve compiled a guide to some example claimable expenses, which can give you a helping hand just in case there are some expenses you haven’t been claiming for, or simply didn’t know you could claim for. It is important to get expert advice as each circumstance is different, which could affect if an expense is claimable. Here is a general list of common expenses for locum dentists operating through a limited company:
Dental Equipment and Uniforms
There is a lot of equipment needed for you to operate successfully and many of these can be deducted as business expenses if they are essential to completing your job and running your business. These items could include dentistry consumables, specialist equipment and more general items such as computers.
You could claim for any courses or training materials you pay for, as these costs can mount rapidly if you are continually updating your knowledge and skillsets.
Travel costs associated to business activities may also be deducted in many cases, so it if worth keeping receipts for everything and learning about your entitlements from your accounting professional.
Depending on your circumstance and the type of insurance purchased, practice insurance costs may be deductible, which over the long term could save you a hefty sum.
Legal and Professional
As we mentioned earlier, your accountancy fees are allowable business expenses as long as they are related directly to the business, but these are not the only professional fees that you can claim back. Legal fees and other professional fees may be deductible when they are solely associated with business activities.
Subscription costs to professional bodies can be deducted as expenses such as the British Dental Association (BDA).
There are a number of general business costs such as marketing and sales costs, for e.g., business cards, along with utility and loan interest costs that may be deductible.
This list certainly isn’t exhaustive and there are likely a whole host of expenses you may be entitled to claim for. We know this isn’t the simple answer you may have wanted but getting help to ensure you are claiming for your full entitlement of expenses can help save you wasted money.
For more information, read our Limited Company guide, suitable for Locum Dentists.
Remember that the ability to claim for certain expenses depends on the nature of your employment status or company legal structure so it is important to talk to specialist dental accountants who can help you accurately assess your situation.
We have worked with dentists from all over the country by helping them determine what expenses can be claimed for based on their individual circumstances. If you are interested in understanding how we could help you reclaim your full entitlement of expenses, get in touch with our New Business team on 0330 024 0406.