Dental News Spring 2017
Welcome to our Spring 2017 Dental News
Making Tax Digital
Many of you may have heard of the intended changes in how taxpayers interact with HM Revenue & Customs known as “Making Tax Digital” (MTD). The intended timetable for introducing MTD has been dropped in view of the announcement of a general election on 8 June. We are fairly certain that this is just a postponement and MTD will be with us in the next few years. When MTD goes live businesses will have to make quarterly returns to HMRC which will mean their accounting systems will need to be up to date. We are strongly advising clients to review their accounting system to ensure that they are ready for MTD. Using Xero will assist businesses in getting ready for MTD.
Please contact us if you would like more information or a free demonstration of Xero.
Xero cloud based book keeping system for Dentists
We are pleased to report that the cloud based accounting book keeping system Xero is proving extremely popular with our Dental clients.
Everything is run online, there is nothing to install and data is backed up automatically. You can log on to the package from any device and anywhere which allows easy access and update of your records. Bank feeds from your business bank accounts allow data to be recorded directly from the bank account into Xero.
For those of our Practices who are not yet using Xero we would be happy to demonstrate the benefits of this online system.
As Platinum Partners of Xero we can:
- move your existing accounting system to Xero
- implement conversions, set up and train
- assist with queries as they arise.
Our Dental team are fully conversant with Xero so if you need help you only need to pick up the phone. We can also access your records direct allowing us to be able to review your current results.
Here are some comments from clients who are already enjoying the advantages of Xero:
"Xero has been a revelation! The system is not complicated to set up and very easy to use. No previous experience of book keeping is necessary and with such an intuitive system it gets easier every time you use it. I would highly recommend it to anyone who wants to take the stress out of managing their accounting needs."
Andrew House Dental Practice
"I have only recently become a client of Humphrey & Co. It is the first time in my career that I have felt wholly relaxed with my Accountant. Karen Wicks introduced me to the concept of 'Xero' and I have thereby progressed from not having a clue about the amount of tax I am due to pay by January 31st, to a situation where I now know what tax I would be due from day to day; hence for the first time in my career, on April 30th, I will know exactly how much tax I am due to pay. This is in no small measure due to Hannah Dartnell who heads up 'Xero' at Humphrey & Co.
Hannah is absolutely amazing with her knowledge of 'Xero' and immediately put my mind at rest when it was introduced to me. She is always available at the end of the telephone and has a solution to every problem. In fact, Hannah is the 'Queen of Xero' and can be heartily recommended as a guide to all new 'Xero' clients '."
Rabin Dental Surgery
Child Benefit claim form
For those dentists who have recently become parents you may think that if your net profit is in excess of £60,000 net per annum there is no reason to complete a Child Benefit claim form. This is not always the case.
In many instances it is still advisable to complete a Child Benefit claim form as this will help the claimant receive National Insurance credits which count towards their state pension.
Going back to basics
An individual who cares for a child can apply for Child Benefit. There are two benefit rates:
|Eldest or only child||£20.70|
|Additional children||£13.70 per child|
Incomes over £50,000
If you or your partner’s individual income is over £50,000 the partner with the highest level of income will need to pay the ‘High Income Child Benefit Charge’. In reality if the higher income is in excess of £60,000 the High Income Child Benefit Charge will equal the Benefit received. In this case you can choose to stop receiving the Child Benefit.
Simon and Louise a couple have just had their first child. Simon is an Associate Dentist his annual net profit is in the region of £70,000. Louise has decided to stay at home for a few years before returning to work so has no income of her own.
Although Louise could claim Child benefit of £20.70 each week equating to an annual total of £1,076.40. Simon would be charged the High Income Child Benefit of £1,076.40 so as a unit there would be no cash advantage in actually receiving the benefit.
Louise should still complete a Child Benefit claim form to help protect her National Insurance credits towards her state pension. For more information on child benefit Claim Child Benefit - GOV.UK
How much tax will you have to pay in January 2018?
5 April 2017 marked the end of the 2016/17 tax year. We would encourage all of our readers to send their records covering the tax year to their accountant as soon as possible rather than waiting until close to the submission deadline of 31 January 2018. The benefits of this are that the tax liability for 2016/17 can be calculated giving time to plan how to settle the January 2018 tax liability.
Introducing Software of Excellence
We are delighted to introduce Software of Excellence and the exciting news of how their strategic cloud based reporting tool, Mypractice Cloud can be integrated with Xero, the cloud based accounting software which we recommend to our clients and support as Platinum partners.
As the market leaders in practice management and dental software best practice, Software of Excellence provides the tools and consultancy to generate tangible business and financial outcomes; turning good practices into great businesses.
Alongside the market leading EXACT practice manage software, Software of Excellence are continually developing powerful solutions to help transform the performance of thousands of dental practices, including the strategic cloud based reporting tool, Mypractice Cloud (MPC).
MPC allows you to effortlessly analyse and track the performance of individual or group practices, using our intuitive online dashboard from anywhere, at any time.
In partnership with Humphrey & Co, we are addressing the HMRC Making Tax Digital (MTD) challenge to alleviate the burden on dental practices in responding to the quarterly submission requirement, by providing seamless integration between Xero and EXACT/MPC.
MPC provides clear insight into the financial status of dental businesses by linking to the data within your EXACT practice management software. Providing in-depth performance and financial reports MPC creates a clear picture for yesterday, today and tomorrow – predicting future trends of all revenue opportunities and risks within the business.
Including tools that allow you to plot trends and drill down into the performance metrics of your business and individual providers, MPC means you can keep your practice performing to its maximum capability; whilst providing the ability to view practice calendars, share documents and even benchmark your business against UK averages.
- Access and analyse your business data in a single dashboard
- Manage estate at all times from anywhere
- Take complete control over practice and provider performance
- Recognise all revenue opportunities and risks
- Now integrated with Xero!
Find out more
Find out more about how MPC can streamline your workflow with the new Xero integration, and take advantage of the Humphrey & Co and Software of Excellence partnership.
Contact us today using the quote HUMPH17
The truth about tax relief
Karen Wicks answers some of the most frequently asked questions that arise when discussing the expenses you can claim tax relief. Download Karen Wick’s article ‘The truth about tax relief’ as featured in the March issue of Young Dentist.