The National Association of Specialist Dental Accountants and Lawyers (NASDAL) has warned that the Government’s hotly contested Making Tax Digital (MTD) project will pose “significant complications” for Britain’s Dentists and Dental practices.
A final consultation response regarding the mandatory tax shake-up, which will affect the majority of business across the UK, was published at the end of January, confirming that the project will go ahead as planned.
Once MTD takes effect, Dental practices and other firms earning more than £10,000 a year will effectively be forced into quarterly digital reporting, with the traditional tax return to be no more by 2020.
Previously, NASDAL and the British Dental Association (BDA) had made representations on behalf of the profession to delay the implementation of MTD and to increase the incredibly low threshold at which quarterly digital updates will need to be submitted to HM Revenue & Customs (HMRC).
NASDAL argued that “because of the unique characteristics of the dental sector … it would be fairer to have an extra year to prepare for MTD and commence on 6 April 2019”.
Sadly, the suggestions were not taken on board.
Last year, Milsted Langdon also issued a formal response to six MTD consultations opened in August 2016, calling for project implementation delays and suggesting that the Government raise the unrealistic £10,000 exemption threshold to meet the VAT threshold of £83,000.
NASDAL has pointed out that while most businesses are used to preparing monthly management accounts and paying VAT on a quarterly basis, Dentists are not typically registered for VAT and do not regularly prepare such accounts – meaning that many practices will need to seek specialist advice now that HMRC has confirmed that MTD will go ahead as planned.
For more information about Milsted Langdon’s specialist tax and accountancy services for dentists, please contact us.