UK dentists are not usually required to be VAT registered as the services provided generally fall within exempt services. A UK business only providing exempt services cannot be registered for VAT.
Where your main principal purpose is to protect, maintain or restore the health of the patient or to provide dental prostheses and you are a person registered on the dental register then your services may be fully exempt from VAT.
Other services you provide may not be exempt from VAT, for example Botox or teeth whitening. In such cases where cosmetic dentistry is performed outside of healthcare, these services may be taxable.
Where your business accounts for management charges, these too may constitute a taxable supply.
Your total taxable supplies should be monitored monthly against the VAT registration threshold of £85,000. If at the end of any month, the taxable supplies for the previous 12 months are in excess of £85,000 then you must apply to register for VAT before HMRC’s deadline. You must also register for VAT immediately if you expect to receive in excess of £85,000 in a single 30 day period.
It may be easier to monitor the value of taxable supplies if the relevant taxable income streams are kept separate from your general dentistry exempt income. If you would like any assistance setting up separate records then please get in touch.
For those of you without a specialist dental accountant and to prevent any nasty VAT surprises, please ensure that you have considered the taxable treatment of all your services and continually monitor your requirement to register for VAT.
It is your responsibility to monitor your taxable turnover at the month end to ensure that you are registering for VAT at the correct date. If you would like discuss this with us, please get in touch.
For further help and advice on VAT get in touch with your usual contact or email hello@doddaccountants.co.uk
Click here to read our other Autumn Newsletter articles.
