When you are working as dentist, focusing on your job and patients all day makes you weary and tired. With such weariness, you can hardly have time and energy to understand and look after your tax matters. The terms used in this subject are almost foreign to you. As a result, you end up paying more tax than you are supposed to.

So, what are the common errors that most of the dentists including you have made in your dental career? Read the points below to find out.

Mixing personal and practice expenses

There are some expenses that incur for the practices. Such expenses include motor expenses, telephone bills, computers, internet and seminars. However, not all the portions of such expenses can be deductible for tax. For instance, when travelling for seminars, involving in extracurricular activities will be your personal expenses and cannot be called practice expenses.

When you use your car to go to the banks or laboratory or buy office supplies, these miles can be calculated as practice expenses. On the other hand, travelling between your work and home doesn’t count as practice expenses but as personal expense and non-deductible.

To ensure not to mix your personal and practice expenses, you need to keep documents which will help you to verify the amount of expenses used for both personal and practice purposes.

Not being updated on dental tax changes

As a dentist, most of your time is preoccupied by your work, you hardly have any time left to look after your tax updates. Due to the different changes in tax rules and regulations, not being updated will make you lose credits and deductions you are entitled to.

So, when you have a qualified accountant working for you, he/she will have the responsibility to take care of new changes and help you save some of your hard earned money from overpaying taxes.

Not understanding tax relief on contributions

Since, tax relief is claimed on the contributions by adding amounts on the individual’s tax return, and not by deducting in the accounts, many dentists make the mistake of not claiming their share. For this reason, taking advices from an expert tax adviser helps you to take advantage of such opportunity.

These errors can cost you money. So, if you do not want to loose your money in the future, you can get help from Harley Street Accountants.

Harley Street Accountants is a leading firm with a group of experienced accountants in London specialising in accounting, tax, VAT and audit services. For more details, contact 020 7060 9556.