Helping you prosper

Tax planning

When it comes to tax planning it’s important for us to gain a complete picture and understanding of your circumstances, who you are and where you want to get to and we’ll help you achieve your long-term goals.

As part of our services for the dental sector, tax planning will always be at the forefront of what we do. We know that many dentists will be affected by tax charges unknowingly which is why we endeavour to support you in all areas of tax that may affect your practice. 

Tax planning

Our team consists of both Chartered Accounts & Chartered Tax Advisors all with many years’ experience.

We can help with the following:

  • Tax efficient profit extraction
  • Family tax planning
  • Property tax planning
  • Corporate taxes and groups
  • Business structure
  • Business reconstruction
  • Pension Tax planning – including Annual Allowance Pension Tax Charges.

Whatever your background we can assist with tax mitigation, strategic planning, the preservation of wealth and passing it on to the next generation.

Annual Allowance Pension Tax Charge

The Annual Allowance is the most that you can save in your pension pots in a tax year (6 April to 5 April). You’ll have to pay tax on anything saved in excess of this limit.

What counts towards the Annual Allowance:

  • The total amount paid into a Private Pension scheme by both you and your employer
  • The growth in any defined benefit schemes – this includes the NHS Pension Scheme and most other public sector pension schemes such as: The Armed Forces Pension Scheme and the Universities Superannuation Scheme.

It’s important to know that the growth in the defined benefit schemes is made up of: your contributions, the Employer Contributions AND other things which affect the growth of the pot such as inflation and other Treasury rates.

This means that you can exceed the limit when your own contributions are way below £40,000 it is therefore important to obtain a “Pension Savings Statement” from the pension provider as soon as you can. These are usually available in the Autumn following the end of a tax year.

If you exceed the annual allowance, you may be able to utilise unused allowances from the previous three tax years.

In addition, there are options to pay any tax due from your pension pot. However, this is not a decision you should take lightly and we would encourage you to speak to a Financial Advisor in such an event. We can put you in touch with advisers that specialise in dentistry.

Reduced Annual Allowance

Your annual allowance may be reduced if you have:

  • Accessed your pension pot
  • A high income

For Higher earners, you’ll have a reduced annual allowance in the current tax year if both of the following apply:

•    Your “threshold income” is over £200,000
•    Your “adjusted income” is over £240,000

It’s important for you to get advice if you are potentially affected by the pension annual allowance. The team at UHY are highly experienced in this area. We can look at your circumstances and advice you of your options.

The next step

If you would to discuss the services we can provide for your business in more detail, please contact our specialist Dave McIver at our Chester office by calling 01244 505 930 or use our generic email dentists@uhy-chester.com.

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