I'm an associate earning around £75,000. Should I incorporate?

Usually not at that level. The administrative cost of running a limited company (formation, separate filings, corporation tax return, PSC payroll, dividend administration) typically outweighs the tax saving below roughly £80,000-£100,000 of sustained associate income. The IR35 reforms have removed much of the historical advantage where engagements are determined inside IR35. A specialist dental accountant from our partner network models your specific numbers before recommending the structure.

Can I claim my GDC retention fee as an expense?

Yes. The GDC annual retention fee is a fully allowable trade expense for self-employed dental associates. Specialist register fees, BDA membership and indemnity premiums (Dental Protection, MDU, MDDUS) are also fully deductible. These should be appearing on every associate return; if they are not, you have probably been under-claiming.

What's the difference between Class 2 and Class 4 NI for associates?

Class 2 NI was abolished for 2024/25 and later years. Self-employed dental associates now pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% on profits above that. There is no separate weekly Class 2 charge any more. You still need to ensure your NI record is maintained for state pension entitlement, which Class 4 NI does automatically when you file your self-assessment.

If I'm on the NHS Pension Scheme, can I also have a private pension?

Yes. The annual allowance (£60,000 for 2025/26, tapered down to £10,000 at very high adjusted income) is the cap across all your pension arrangements combined, including the NHS Pension Scheme growth and any private pension contributions. A specialist from our partner network models the total pension input value against your annual allowance and flags where Scheme Pays may apply.

How does switching accountant work?

Your new firm writes to your existing accountant for professional clearance and for your records, and picks up from the position they hand over. How long that takes is in the outgoing accountant's hands, so what is filed by whom gets agreed with you before anything moves. You can switch mid-tax-year: the tax year and the filing obligations do not change, only who prepares the return.

Self-employed associates · Ltd-company locums · NHS + private

For associates

Accountants who get associate dentist tax right

An associate return is not ordinary self-employment. Status rests on how the work actually runs rather than on the BDA model agreement, indemnity and CPD are easy to under-claim, and NHS Pension growth counts towards the annual allowance whether or not anyone checks it. Our team at Dental Finance Partners works exclusively with UK dentists, so those are the questions we open with.

55p

AMAP rate, first 10,000 miles

50%

Of last year's bill, per payment on account

£60k

Pension annual allowance

£50k

MTD sign-up threshold, Apr 2026

What we hear from associates

The questions and concerns that come up most often in a first conversation.

Am I really self-employed?

The BDA model contract on file does not automatically mean self-employed status. HMRC and the tribunals test the actual working arrangement against control, substitution, mutuality of obligation, financial risk and integration. A specialist from our partner network reviews the reality, not just the paperwork.

What expenses can I actually claim?

Indemnity, GDC retention, CPD, professional subscriptions, loupes, motor between practices, phone, accountancy. The frequent misses are inter-practice mileage, which runs at 55p a mile for the first 10,000 miles from 6 April 2026, and an annual indemnity premium that never made it onto the return. The last filed return and the current year both get reviewed.

Should I be incorporating?

Usually no, unless your locum or associate income is sustainably above roughly £80,000-£100,000 AND most engagements sit outside IR35 AND you have tax-planning flexibility (non-working spouse, deferred income horizon). Below those, the Ltd company route adds admin without much real upside.

What about the NHS Pension Scheme?

Still one of the most valuable schemes in the UK. But high-earning associates can hit the tapered annual allowance and trigger a charge. A specialist from our partner network models pensionable pay against the threshold and flags where Scheme Pays may make sense.

How do I handle multiple practice engagements?

Different practices may classify the same locum work differently for IR35. Travel between practices is deductible (not home-to-first-practice). Apportioning materials and motor by practice matters for an accurate return. A specialist from our partner network maps it out per engagement.

I'm worried about HMRC challenges

HMRC scrutinises three things on dental associate returns: status, expenses, and undeclared private income. A specialist from our partner network structures your records so each is defensible, and can act for you if HMRC opens an enquiry.

How the work runs for associates

Annual self-assessment and tax return

All associate income (NHS and private), expense claims, NHS Pension contributions, student loan plan, payment on account positions. Records are gathered through the year rather than in the week before the 31 January filing date.

Status review against the IR35 tests

A specialist from our partner network looks at how the work actually runs, not what the contract says. Where status risk exists they tell you and structure to reduce it. If a practice issues an inside-IR35 SDS they walk you through the implications.

Expense claim review for past three years

An under-claimed return can be amended, and the window reaches back further than most associates expect. The last three filed years are reviewed, amendments go in where the under-claim is material, and the rest is left alone rather than dressed up.

Mortgage-ready accounts

Lenders want SA302s and the matching HMRC tax year overviews, usually for the two most recent complete tax years, and they read the trend as much as the total. Steady or rising associate income supports the application; a dip needs explaining. Some specialist lenders will work from a single year.

Annual planning conversation

60-minute call every March covering expense optimisation, NHS Pension headroom, whether incorporation makes sense yet, and the upcoming tax year payments-on-account schedule.

Speak to a dentist-only specialist

Get your associate return done properly

30-minute scoping call, free. A specialist from our partner network looks at your current set-up, flags the expenses you're missing, and tells you honestly whether incorporation is on the table yet.

Common questions

I'm an associate earning around £75,000. Should I incorporate?: Usually not at that level. The administrative cost of running a limited company (formation, separate filings, corporation tax return, PSC payroll, dividend administration) typically outweighs the tax saving below roughly £80,000-£100,000 of sustained associate income. The IR35 reforms have removed much of the historical advantage where engagements are determined inside IR35. A specialist dental accountant from our partner network models your specific numbers before recommending the structure.
Can I claim my GDC retention fee as an expense?: Yes. The GDC annual retention fee is a fully allowable trade expense for self-employed dental associates. Specialist register fees, BDA membership and indemnity premiums (Dental Protection, MDU, MDDUS) are also fully deductible. These should be appearing on every associate return; if they are not, you have probably been under-claiming.
What's the difference between Class 2 and Class 4 NI for associates?: Class 2 NI was abolished for 2024/25 and later years. Self-employed dental associates now pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% on profits above that. There is no separate weekly Class 2 charge any more. You still need to ensure your NI record is maintained for state pension entitlement, which Class 4 NI does automatically when you file your self-assessment.
If I'm on the NHS Pension Scheme, can I also have a private pension?: Yes. The annual allowance (£60,000 for 2025/26, tapered down to £10,000 at very high adjusted income) is the cap across all your pension arrangements combined, including the NHS Pension Scheme growth and any private pension contributions. A specialist from our partner network models the total pension input value against your annual allowance and flags where Scheme Pays may apply.
How does switching accountant work?: Your new firm writes to your existing accountant for professional clearance and for your records, and picks up from the position they hand over. How long that takes is in the outgoing accountant's hands, so what is filed by whom gets agreed with you before anything moves. You can switch mid-tax-year: the tax year and the filing obligations do not change, only who prepares the return.

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