Practical financial advice for self-employed dental professionals
If you’ve recently become a dental associate or started working for yourself, it’s important to stay on top of your financial responsibilities from the outset, not just your clinical ones.
Registering as self-employed
You’ll need to register with HMRC as self-employed within three months of starting to trade. This ensures your income is taxed correctly from the beginning.
Planning for tax
As a self-employed professional, you’ll pay tax directly to HMRC, usually in two instalments each year (January and July). If you began working mid-year, your first tax deadline may fall later, so it’s important to check your dates.
We recommend setting aside approximately 30% of your income to cover tax, National Insurance, and any student loan repayments.
Support from a specialist accountant
Our team can prepare your annual tax return, advise on allowable deductions, and help you keep accurate financial records, from CPD course fees to travel costs.
We also recommend using cloud accounting software, which connects directly to your bank and allows you to manage finances from your phone with ease.
Learn with us
We run virtual workshops tailored to new associates, covering key areas like:
- Using cloud accounting tools
- Linking business accounts
- Understanding your tax obligations
- Personal and business finance tips
Managing your business finances
Open a separate business bank account to keep your personal and business finances clear. If you’re thinking about applying for a mortgage in the future, be aware that lenders usually want to see two years of self-employed income.
You may also want to explore:
- Help-to-Buy ISAs for your first home
- Cash ISAs for tax-free savings
- Stocks & Shares ISAs as longer-term investment options, with careful consideration
Insurance and protection
Review any income protection policy you may have set up during your university or VT year to ensure it still meets your needs.
Considering practice ownership?
Buying a dental practice can be a fantastic step in your career — but it requires careful financial and legal planning. Our specialist advisors can help with:
- Valuation and due diligence
- Choosing between buying the business or its assets
- Reviewing legal agreements
- Creating financial projections for funding applications
Let’s talk
If you’d like to speak to Jayne about any of the topics above, please get in touch by phone or email. We’re here to help you build a strong foundation for your future in dentistry.
