Dentist Uniform Tax Rebate
Dentistry to be a wonderful and challenging profession, many small and medium dental practices can’t offer group health insurance coverage due to rising costs and restrictive minimum contribution and participation requirements. Following the passage of the Affordable Care Act, individuals now have an unprecedented number of options for health insurance that all meet a minimum standard of quality and coverage.
Dental practice employees can now get health insurance through their employer’s group plan, or get reimbursed by their employer for the cost of their individual plans. These new options mean that employers can provide their employees with high quality health insurance while controlling the cost of the benefit
Starting from the 1 August 2008 all dental care professionals (DCPs) including dental nurses, technicians, hygienists and therapists have been required to be registered with the GDC. This registration requires payment of an annual registration fee (ARF), currently set at £96 per year.
Whether the DCP pays the registration fee or the practice picks up the cost on behalf of its staff is up to the practice owner. I am aware that some PCTs reimburse a proportion of the fee for its nurses that are employed in hospital or as part of community services.
The GDC registration fee is included on the HMRC’s (HM Revenue and Custom’s) approved list of fees that qualify for tax relief. Therefore, if the DCP pays his or her own annual registration fee, then tax relief can be claimed by the DCP. For a basic-rate taxpayer this means 20% tax relief can be obtained, equating to a tax repayment of £19.20. Employees paying their own registration fees and any other subscriptions to professional bodies such as the BADN should notify their tax office and request that their tax code is adjusted accordingly. That way, tax relief will be obtained each and every month. You should also notify HMRC of any change to the annual fee in the future
Many practices provide uniforms to nurses and possibly to reception staff. This expense is tax deductible for the practice against the business profits, however, the expense must be reported to HMRC on form P11D. Again, the reporting requirement can be removed by a dispensation.
Unfortunately, an employee cannot claim tax relief on the cost of a uniform where s/he meets the cost.
What can I claim?
Healthcare employees, including dental nurses and receptionists that are required to wear a uniform as part of their duties and that meet the cost of laundering their uniform, are entitled to claim tax relief in respect of laundry costs. The relief is calculated by means of a flat-rate deduction and the amount depends upon the employee’s occupation. A dental nurse is entitled to claim a deduction of £100 per year and receptionists and other uniformed staff are entitled to claim £60 per year. This equates to tax relief of £20 and £12 respectively for a basic-rate taxpayer.
you may be entitled to claim a tax rebate in relation to your work uniform. There are applicable tax credits for work uniform expenses however these only apply in certain instances:
- You supply and launder your own uniform
- You supply your own uniform but it is laundered for free
- You are required to launder a uniform that is supplied for you
- If you have to buy your own shoes and clothes for work. If your employer has not given you an allowance for such purchases, and this uniform is only used for work, you can claim for a tax refund.
A deduction is generally allowed for the cost of courses. HM Revenue & Customs may challenge the deduction where the course provides you with new skills as opposed to maintaining your existing skills. In practice, this is unlikely to be a problem for typical 1 day, or even 1 week courses and conferences. A deduction will also be allowed for related travel and accommodation costs unless there is some other purpose for the trip or you were accompanied by your spouse (in which case any costs relating to them must be disallowed).