Question 1

Do I need a specialist accountant if I'm an associate dentist, or will any accountant do?

Accepted Answer

A general accountant can file your return, but associate dentistry has quirks a generalist rarely sees day to day — NHS pension mechanics, mixed NHS/private income, and dental-specific allowable expenses like lab fees and indemnity. A specialist dental accountant knows these areas well enough to catch savings and pension mistakes before they happen, not just after your return is filed.

Question 2

Am I self-employed or employed as an associate dentist?

Accepted Answer

Most associate dentists are self-employed for tax purposes, even though NHS pension contributions may be deducted at source similarly to an employee. This means you're responsible for your own Self-Assessment, National Insurance, and expense claims — but your NHS Pensionable Earnings are still reported by the practice, which is where a lot of confusion comes from.

Question 3

What can I actually claim as an associate dentist?

Accepted Answer

Common allowable costs include lab fees, indemnity insurance, GDC registration, CPD courses, professional subscriptions, and a proportion of travel between practices. What you can claim depends on your specific arrangement, so it's worth reviewing your expenses with someone who knows the dental-specific list, not just the generic self-employed checklist.

Question 4

How does the NHS Pension Scheme annual allowance affect me?

Accepted Answer

The annual allowance limits how much your pension can grow tax-free each year. Because the NHS Pension Scheme is a defined benefit scheme, your growth is calculated very differently to a normal pension contribution — a good year for NHS income can trigger a pension tax charge even if you never see the money as cash. This is one of the most common surprises we help associate dentists navigate.

Question 5

What is Scheme Pays and when should I use it?

Accepted Answer

Scheme Pays lets you settle an annual allowance tax charge directly from your NHS pension rather than paying HMRC out of pocket. It can ease cash flow, but it also reduces your future pension benefits, so whether it's the right call depends on your wider financial picture — it isn't automatically the best option just because it's available.

Question 6

What is the tapered annual allowance and could it apply to me?

Accepted Answer

If your total income (including pension growth) goes above certain thresholds, your standard annual allowance can be gradually reduced — sometimes significantly. Dentists with high private income on top of NHS work are more likely to be affected, and it's easy to miss until a pension tax charge appears.

Question 7

Can I use carry forward to reduce a pension tax charge?

Accepted Answer

Carry forward lets you use unused annual allowance from the previous three tax years to offset pension growth in the current year, which can reduce or eliminate a tax charge. It requires accurate records of your pension input amounts for those years, which is where working with someone who understands NHS Total Reward Statements makes a real difference.

Question 8

Does Making Tax Digital (MTD) affect me, and when?

Accepted Answer

MTD for Income Tax is being phased in for self-employed individuals above certain income thresholds, requiring digital record-keeping and quarterly updates to HMRC instead of a single annual return. If you're self-employed as an associate dentist, it's worth checking now which phase you fall into so your bookkeeping is ready in time rather than scrambled at the deadline.

Question 9

Should I be a sole trader or set up a limited company?

Accepted Answer

It depends on your income level, how much you plan to reinvest versus draw out, and your longer-term plans, like practice ownership. A limited company can offer tax efficiencies at higher income levels, but it also brings extra compliance and cost — it's a decision worth modelling properly rather than defaulting to.

Question 10

How is my income taxed if I do both NHS and private dentistry?

Accepted Answer

Both NHS and private self-employed income are usually combined and taxed together through Self-Assessment, but the NHS portion also feeds into your pensionable earnings and annual allowance calculations in a way private income doesn't. Keeping the two clearly separated in your records makes both your tax return and your pension figures much easier to get right.

Question 11

When should I switch accountants if I'm not with a dental specialist already?

Accepted Answer

There's no bad time, but the easiest window is often just after your accounts are filed for the year, or before a big change like moving practices, taking on a new associate agreement, or considering practice ownership. A good specialist can usually manage the handover with your previous accountant so nothing falls through the cracks.

Specialist Dental Accounting Services

Who we help

Molaris helps associate dentists, self-employed dentists and dental practice owners stay tax compliant, plan ahead and make better financial decisions with a specialist dental accounting services built around the way dentists actually work.

Who we are

What we do

Limited Company Accounts

Making Tax Digital for Income Tax

Self-Assessment Tax Return

NHS Pension Annual Allowance Advice

Tax Planning

Bookkeeping services

1. Book a conversation

How we work

2. We review your position

3. We create a clear plan

4. We support you going forward

Why Molaris?

Frequently asked questions