The National Association of Specialist Dental Accountants and Lawyers (NASDAL) has warned that Making Tax Digital (MTD) will pose “significant complications” for Britain’s Dentists unless the project is sensibly delayed and reformed.
A final consultation response regarding the mandatory tax shake-up, which will affect the majority of business across the UK, is expected to be published any day soon.
Under current proposals, 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.
NASDAL and the British Dental Association (BDA) have been making 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).
A NASDAL spokesperson said: “NASDAL strongly supports the BDA stance on this matter as they have made representations to HMRC that because of the unique characteristics of the dental sector that it would be fairer to have an extra year to prepare for MTD and commence on 6 April 2019”.
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 should the MTD timetable commence on 6 April 2018 as proposed by HMRC.
Salhan Accountants is a multi award-winning firm which prides itself on keeping up to date with any financial news and information which may affect the sector. For more information about our specialist tax and accountancy services for dentists, please contact us.