Mac Kotecha – a specialist dental accountant for over 28 years – shares with you his 5 top tips for this issue. If you can only do 5 things this month, make sure you read this first:

1. Get your credit cards to work for you (not the other way around!)

   Move to using a 0% credit card. These can be one of the following three types:

   · 0% on purchases for several months – This is basically like an interest-free loan so you can shop till you drop and pay only the minimum monthly repayments. To avoid paying any interest at all, you simply pay off the remaining balance just before the 0% deal expires.

   · 0% on balance transfers for several months - by transferring other debts (such as balances on store cards and credit cards) to one of these, you can avoid paying interest for an extended period.

   · 0% on both for several months - these allow you to transfer debts and spend without incurring interest. A true Gem!

2. Make use of your spouse’s allowance

If you are planning to sell a second or even third property, which is in your own name, consider transferring half of it to your spouse first. There is no capital gains tax (or CGT, as it is referred to, affectionately) to pay on transfers between spouses*, and when you sell the property, there may be two lots of annual exemptions available to you (currently £8,500). Therefore, you may well save CGT on £8,500! In addition, if your spouse is not a higher rate taxpayer, but you are, this means additional tax savings. It’s hardly surprising the number of weddings in the UK has risen for the third time running!

(*Note that this also applies to same-sex couples who have registered as a couple under the terms of the recent Civil Partnership Act.)

If you are self-employed, as well as being employed (say by a local hospital) there is a chance that you could have overpaid your National Insurance contributions. Unless you want the government to receive a "bonus" from you, it’s probably worthwhile checking! You can make a claim for deferment of payment of class 2 and/or class 4 NIC for future contributions. It is even possible to get a repayment of the overpaid part of National Insurance within certain time limits.

If you are self-employed (either as an associate or as a practice owner) it may well be that your spouse helps out with certain duties. For example, your spouse may assist with paperwork or reception duties. If they have no other income, you can pay them £94 per week (getting you tax relief at your highest rate of tax), without suffering any Employers NI on their salary, and without them suffering any tax. In addition, you can make pension contributions of up to £3,600 per annum on their behalf, which will also get you tax relief at your highest rate of tax! Anything that is a part of business expenses also saves you paying the 1% NIC surcharge. That may not sound like much, but why cough up any more than absolutely necessary? In some circumstances, a much higher rate of remuneration for your spouse may be advantageous. It is always best to get professional advice first though.

If you hire equipment, you will have to pay the leasing company rental payments, on which they will also charge VAT.

When the Leasing Company acquired the asset originally, they would have claimed back the VAT that they suffered on the asset. Therefore, the cost price of the asset on which the rentals are based on should be the cost after VAT has been deducted (as they will have reclaimed it). Still with me? However, some companies base it on the full cost including VAT, which of course, results in higher rentals for you and 17½ % up-front additional profit for them!

Mac Kotecha (FCA) is a Chartered Accountant and Certified Financial Planner, who deals exclusively with dentists and has been established for over 27 years. His company offers Accountancy, Taxation & Payroll services in addition to invaluable advice on practice management, buying/setting up a practice and other dental issues. Contact him on 020 8346 0391 or go to www.specialistdentalaccountants.co.uk to learn more.