If you're new to being a Dental Associate or you've started working for yourself, this advice is for you.
It’s essential to be well-prepared not only for your clinical responsibilities but also for the financial aspects of your profession.
Register as Self-Employed:
You should register with HMRC as self-employed within 3 months of starting to make sure you pay the right taxes.
Paying Taxes and Saving:
Pay your taxes directly to HMRC. Tax deadlines are in January and July. If you started in mid-2020, your first tax bill might be due in January 2022. It’s wise to save around 30% of your yearly income for taxes. Remember, you’ll also pay National Insurance and maybe student loans.
Our accountants will help with your tax returns, accounts, and tax deductions, and keep records of expenses, like course fees. Cloud accounting software can assist, letting you manage finances on your phone and connect to your bank.
We offer virtual workshops on finance and taxes, especially for new Associates. Learn how to use accounting software, link to your bank, and understand taxes for your business and yourself.
Managing Business Finances:
Open a separate business bank account to track business spending. If you plan to get a mortgage, lenders may want 2 years of self-employed income proof. Check out Help-to-Buy ISAs for saving towards a deposit. Cash ISAs can help early in your career, offering tax-free interest. Consider Stocks & Shares ISAs for long-term savings, but invest carefully.
Check your income protection policy from university or VT year to ensure it’s still enough.
Buying a Practice:
Buying a practice is exciting but needs careful planning. Advisors can help you understand its value, whether you’re buying the company or assets, what the agreement should include, and financial projections for funding.
If you want to talk to Jayne about these topics, get in touch via email or phone below.
More information can also be found in our dental guide.