Dental Practice Incorporation and Registration Services
Many businesses – including dental practices – have taken advantage of the benefits available from incorporation. These include income tax benefits, protection of personal assets, increased tax allowance for spouses and access to more tax efficient life cover. Dentists have been trading as Limited companies since 2006 to maximise on all this and more. However, legislative and NHS pension changes have made the process more complex than it was. What was once a simple process for most practices is now made more complicated by a number of situations.
If you have an NHS dental contract, you will need to apply to NHS England for approval to incorporate your practice. This involves an application process, amongst other things, which requires the following;
- Patient demographics
- Re-attendance rates
- Complaints procedure
- How incorporating will maintain, if not improve access for patients
During the application process, your local area team (LAT) have an opportunity to review your existing contract. As such, any practices with contract performance issues should think carefully before applying to incorporate, especially if their NHS work accounts for a large percentage of their patient-base.
CQC & Company Formations
Every practice needs to apply to register as a limited company with the CQC, ensuring that your trading position is reflected with your CQC registration. While usually a simple task, some business names (such as those that include ‘dentist’) require written permission from the GDC, which can take a little more time.
You will need to inform all employees of the transfer of employment to your new Limited company. Contracts with associates and other self-employed professionals must also be updated to reflect the changes. Failure to do this can result in a penalty of 13 weeks’ gross pay to all affected employees. It can also have repercussions should you later decide to sell the business or if there are any disputes with associates.
This is typically not an issue for supplier relationships, but it is worth double checking the clauses of any contracts you have with them. Many suppliers will simply transfer the existing contract over to the Limited company if you are continuing to work with them. However, there is a risk that some could invoke the cancellation policy in order to do this, which might result in unexpected termination penalties.
When transferring the business to a Limited company, it is important to document the value of the practice. The best way of doing this is to get a professional valuation from a trusted provider like Figurit.
Is incorporation right for me?
There are still several advantages available through incorporation, which many practices would still benefit from. It is just important that you assess your personal situation to determine whether it is the best option for you. In addition, it’s crucial to appreciate the long-term complexities of incorporation before you get started – submitting the paperwork too hastily can lead to challenges later on.
Working with the specialists at Figurit can help – having supported a range of businesses find the most suitable solutions for them, we have extensive experience and expertise in the field. We understand the impact of different company types on your financial obligations, business plans and strategies, and can guide you forward efficiently.
Looking for more information?
Contact us by completing the form below or call 0207 3769 333 to arrange a complimentary meeting with a specialist medical and dental accountant.