Why it matters
Tax planning is not the same as filing a tax return
Filing a return records what happened. Tax planning changes what happens. The difference between a dentist with a good accountant and one with a great one is rarely the accuracy of the filing – it is the advice that comes before the numbers are finalised.
Tax planning sits alongside our dental accountancy service – the proactive layer of advice that turns compliance into strategy.
Good tax planning for dentists means knowing when incorporation makes financial sense and when it does not. It means structuring pension contributions in a way that reduces your liability now and builds wealth long term. It means making sure every allowable expense is claimed, every relief is used, and every significant decision – buying equipment, extracting profit, planning a sale – is made with the tax consequences understood in advance.
Samera has worked exclusively with dentists since 2002. We own and run The Neem Tree Dental Group. The tax planning advice we give comes from direct experience of the decisions you are facing – not just the rules that govern them.
Part of our dental accountancy service
Tax planning is the proactive layer that sits inside our full dental accountancy service – the advice that runs alongside your accounts, payroll, VAT and corporation tax work rather than sitting separate from it. You can engage tax planning on its own, or as part of an ongoing accountancy package where it gets pulled into every major decision you make through the year.
Tax planning by audience
How much tax can a dentist actually save with proper planning?
Tax planning looks different for an associate than it does for a practice owner or a group director. The reliefs available, the decisions that matter most and the risks worth planning for are all different. Here is what good tax planning looks like at each stage.
For dental associates
Getting your tax right from the start
As a self-employed associate, you are taxed on your profits – which means the gap between what you earn and what you legitimately claim has a direct impact on your tax bill every year. Associates also face a key structural decision at some point: whether to continue as a sole trader or set up a limited company.
The tax planning priorities for associates are:
- Claiming the full range of allowable expenses – GDC registration, indemnity, BDA membership, CPD, clinical clothing, instruments, home office costs
- Pension contributions – the right contribution level reduces your tax bill now and builds long-term wealth
- Incorporation timing – setting up a limited company too early can cost more in compliance than it saves in tax; too late and you leave savings on the table
- Payment on account management – planning for January and July payments to avoid cash flow problems
- Making Tax Digital compliance – from April 2026 for associates earning over £50,000
See our accounts for dental associates
For dental practice owners
Planning tax across a more complex structure
Practice ownership introduces a range of tax considerations that do not exist for associates. The most important decisions involve how you extract profit from the company, how you plan for the eventual sale of the practice, and how you make major purchases in the most tax-efficient way.
The tax planning priorities for practice owners are:
- Dividend and salary structuring – the right mix of salary and dividends reduces both corporation tax and personal income tax
- Capital allowances – equipment, fit-out and refurbishment can generate significant allowances that reduce your corporation tax bill
- Pension contributions – employer contributions are deductible against corporation tax and are one of the most tax-efficient ways to extract profit
- VAT planning – dental practices have a mixed VAT position; getting this right prevents costly errors
- Business Asset Disposal Relief – planning from early in ownership ensures you qualify for the reduced CGT rate when you sell
- Company restructuring – as the practice grows, the right holding structure can protect assets and create tax efficiencies
- S455 reclaim process – if you have overdrawn director loan accounts, the reclaim process needs managing correctly
See our accounts for practice owners
For dental groups and DSOs
Group tax strategy across multiple entities
Running a dental group introduces a layer of tax complexity that requires a different approach entirely. Group relief, inter-company charges, holding company structures and exit planning all need to work together as part of a coherent strategy.
The tax planning priorities for dental groups are:
- Group relief – losses in one entity can be offset against profits in another within the same group
- Inter-company charges – management fees and recharges between entities need to be structured correctly to achieve the intended tax outcome
- Holding company structure – the right structure protects assets, facilitates future acquisition and maximises the value retained on exit
- Capital gains and inheritance tax planning – for group owners with significant equity, long-term planning matters
- Exit structuring – Business Asset Disposal Relief, earn-out structures and the tax treatment of sale proceeds all need planning well in advance
- EBITDA maximisation – the tax structure of the group directly affects the EBITDA figure a buyer will pay a multiple on
See our accounts for dental groups
What we cover
Our full range of dental tax services
Across the full tax lifecycle – from day-to-day compliance to long-term planning – here is what our team handles for dentists.
- Incorporation assessment Is a limited company right for you? We work through the numbers honestly.
- Self-assessment Personal tax return preparation, registration and deregistration.
- Corporation tax CT600 preparation and filing, plus proactive planning to reduce the liability.
- Dividend and salary strategy Structuring profit extraction to minimise personal and corporate tax.
- Capital allowances Equipment, fit-out and refurbishment claims to reduce corporation tax.
- Pension planning Contribution structuring for both personal and employer pensions.
- VAT Mixed VAT management across exempt and taxable dental treatments.
- Tax investigation cover Protection and support if HMRC opens an enquiry into your affairs.
- Capital gains tax CGT planning on practice sales, property and investments.
- Inheritance tax Long-term planning to protect what you have built for the next generation.
- Business Asset Disposal Relief Qualifying for the reduced CGT rate when you sell your practice or group.
- Making Tax Digital Xero setup and quarterly MTD filing for associates and practice owners.
- P11D and benefits in kind Company cars, private medical and other benefits reported correctly.
- S455 reclaim Application and submission for overdrawn director loan account tax reclaims.
- Trust and estate tax returns For dentists with trust structures or estate planning requirements.
- Non-resident landlord returns Annual accounts and tax returns for non-resident landlords.
Making Tax Digital
Making Tax Digital is the change every dentist needs to act on now
Making Tax Digital (MTD) is the biggest change to how dentists report income in a generation, and the deadlines are close. If you are a self-employed associate or a sole trader landlord, you are in the first wave.
- April 2026 – MTD for Income Tax begins for self-employed individuals and landlords with income above £50,000. Digital records and quarterly submissions become mandatory.
- April 2027 – The threshold drops to £30,000, bringing most remaining associates into scope.
- Following – MTD for Corporation Tax is expected to follow for limited companies, with the timetable still to be confirmed by HMRC.
What Samera does: We migrate every eligible client to Xero, set up the digital record-keeping correctly, and manage the quarterly submissions for you as part of your package. Getting set up early means no scramble before the deadline and no penalties for late or non-compliant filing.
See our full Making Tax Digital service.
Why Samera
Tax advice that comes from experience, not just the rulebook
We own dental practices
Arun co-owns The Neem Tree Dental Group. The tax decisions we advise on – incorporation, profit extraction, exit planning – are decisions we have made ourselves.
Fellow of the ICAEW with a CTA pathway team
Arun Mehra FCA leads the team. Natasha is on the CTA pathway. Tax is not a sideline – it is core to what we do for every client.
Dentistry only
We do not advise on tax for retail, construction or hospitality. Every reliefs conversation, every incorporation review and every exit plan we run is for a dentist.
Proactive not reactive
We flag tax planning opportunities as they arise throughout the year – not just at the point of filing. Most of the savings come from decisions made before the year end, not after it.
Client reviews
I’ve had an outstanding experience with Samera, and I can’t recommend them enough! … incredibly professional, knowledgeable, and genuinely supportive throughout. Her attention to detail and ability to clearly explain complex financial matters has been a huge relief for me as a dentist managing both clinical work and business responsibilities.
EMRE, Dentist – 5 Stars
Arun Mehra and his friendly team … helped and advised me in all matters of accountancy, raising finance, payroll, furlough support and general business advice. The whole teams collective vast experience and knowledge in all business matters and dentistry is invaluable when you are running any type or size of business. …
Antimos, Dentist – 5 Stars
Used Samera business advisors for my self tax return form and they were amazing from start to finish. They made me understand every single step and made the process swift!
Remzie, Dentist – 5 Stars
Arun … helped us tremendously over recent years in setting up our dental practice. From attending the bootcamp, discussing finances to support with marketing, the team have been brilliant. Very approachable and always go over and beyond. Highly recommended!!
GG Smiles, Practice Owner – 5 Stars
Who you’ll work with
Speak to the tax planning team
Book a free, no-obligation call directly with the team member whose work matches what you need.
CEO, Samera
- Dental Accountancy and Tax for Dental Groups and DSOs
- DSOs and Large Dental Groups Dedicated Finance and Accounting Functions
- Dental Practice Sales – £1m+ Only
- Samera Global – Outsourcing + Offshoring
Accountancy Senior Manager
- Tax Saving Advice
- Dental Accountancy and Tax for Practice Owner
- Finance Director Services
Business Development Executive – Accountancy and Tax
- Dental Accountancy and Tax for Dental Associates
- Making Tax Digital Expert
Or send us a message
If you’d prefer to send us your details rather than book a call, fill in the form below and our team will be in touch as soon as possible.
Phone: (+44) 20 7100 8788
WhatsApp: Message us on WhatsApp
Related services
Dental accountants
Full dental accounts and tax service – tax planning is part of this offering.
Samera Growth Advisory
Ongoing growth advisory for practice owners and groups – tax structure work runs through every tier.
Further reading
Taxes for Dental Associates
What dental associates need to know about self-assessment, allowable expenses and managing their personal tax position.
Taxes for Dental Practice Owners
Corporation tax, VAT, capital allowances, dividend strategy and the key tax considerations for practice owners.
Taxes for Dental Groups
Group relief, inter-company charges, holding structures and tax planning for multi-site dental groups.
DSO Playbook: Exit 2030
Turn your dental group into a high-value exit-ready enterprise before 2030 – covers exit structuring, EBITDA and tax planning for a sale.
FAQs
How much tax can a dentist save with proper planning?
It varies significantly depending on your income, structure and what planning has already been done. Associates who have never had a specialist review their expenses often find claims they have been missing for years. Practice owners on a straightforward salary-only structure can frequently save thousands annually through a more efficient salary and dividend mix. The only way to get a specific answer is to book a review – we will tell you honestly what the opportunity looks like for your situation.
Should I set up a limited company as a dental associate?
Incorporation is not automatically the right answer for every associate. A limited company comes with additional compliance costs – accountancy fees, Companies House filings, potential payroll requirements – that need to be outweighed by the tax savings. The savings typically become meaningful once self-employment profits reach a certain level, but the exact point depends on your personal circumstances, expenses and plans. We review this with every associate client and give a specific recommendation based on your actual numbers.
What is the most tax-efficient way to extract profit from a dental practice?
For most practice owner companies, the most efficient approach is a combination of a modest salary set at the National Insurance threshold and dividends for the remainder of profit extraction. Employer pension contributions are also highly efficient as they reduce corporation tax and do not attract income tax or National Insurance. The right mix depends on your personal income tax position, the practice’s profit levels and your plans for the money – which is why this needs to be reviewed specifically for your situation rather than applied as a blanket rule.
What is Business Asset Disposal Relief and does it apply to dentists?
Business Asset Disposal Relief (previously Entrepreneurs’ Relief) reduces the Capital Gains Tax rate on qualifying business disposals. For dentists selling a practice or shares in a dental company, it can significantly reduce the tax on sale proceeds. To qualify, you need to have owned the shares for at least two years and met the relevant qualifying conditions throughout that period. Planning from early in ownership – not just at the point of sale – is important to make sure you qualify and that the relief is maximised.
What happens if HMRC opens an investigation into my dental practice?
HMRC investigations can be time-consuming and stressful even when your affairs are in order. Our team handles all correspondence with HMRC on your behalf and manages the investigation process from start to finish. Tax investigation cover – included in our Associate Comprehensive and Ltd Comprehensive packages and available as an add-on on others – covers the professional fees involved in defending an investigation.
Does Making Tax Digital affect dentists?
From April 2026, self-employed dentists and landlords with income above £50,000 must keep digital records and submit quarterly updates to HMRC using MTD-compatible software. The threshold drops to £30,000 in April 2027. For limited companies, MTD for corporation tax is expected to follow. Samera migrates all eligible clients to Xero and manages the quarterly submissions as part of their package.
Find out what better tax planning could mean for your finances
Book a free 30-minute call with Arun or Natasha. We will look at your current situation and give you an honest view of where the opportunities are.