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THINKING BUSINESS
a blog by Chris Barrow

The screw begins to turn on associate taxation



The Independent Dental Association of Wales are the first to announce that the HMRC rules around the taxation status of associates are changing.


"HMRC have today announced that from April 2023, they will be withdrawing their ESM 4030 guidance (automatic self employment status for associate dentists using a standard BDA template contract).


They invite you to use their online self employment status tool (https://www.gov.uk/guidance/check-employment-status-for-tax) to check associate dentist status.


They have asked for feedback with regards to the use of this in relation to dentistry so please do check yourself or your associates and provide feedback.


HMRC have advised IDAW that the CEST tool is based on practicable application of an associate contract as opposed to just the contract wording. They have also said they will take declarations of self employment status using the tool in good faith if all questions are answered honestly."


As has long been expected, associates will soon have to be CEST-tested to determine their status for tax.


It is going to be very interesting to see how that affects those working full time for corporates.


Given the Prime Minister's current battle with his own back-benchers over the proposed 1.25% rise in National Insurance contributions, it is increasingly clear that paying back the debt incurred in dealing with Covid is about to become a very real concern for all of us.


As the screws begin to tighten on taxation, we must all be mindful of the affect this can have on recruitment, retention and consumer confidence.


At the moment it's easy - it is raining patients. That may not always be the case. Expansion and growth are going to have to be planned for very carefully.


In the meantime, associates and their hosts are going to have to take an equally careful look at their T's & C's.



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