HMRC Finally Breaks its Silence on Associates Self-Employment Status!
As I am sure most of you are aware, HMRC have been known to periodically review the employment status of dental associates. Previously when HMRC have reviewed the status, it has always been decided that associate dentists that have contracts approved by the BDA and DPA are covered by HMRC guidance whereby they are correct to have their profits assessable under trading income rules not employment income. Essentially this means they are correct to be deemed as self-employed and should not be taxed under PAYE.
HMRC’s most recent review of dental associate’s employment status has had a different outcome!
HMRC has announced that the present guidance will be withdrawn, with effect from 6th April 2023 and the status of dental associates should be considered on a case-by-case basis.
The new guidance will see the employment status be assessed in line with CEST. There is an online HMRC CEST test that you can do – and we would advise all associates and practice owners to run through this test and keep a copy of the result given;
The likelihood is, most dental associates will still be considered as self-employed and nothing will have to change with the way you report your taxes. The only issues will arise where associates have less autonomy in their role.
If you have any questions, or concerns about your tax status having completed the CEST test, please don’t hesitate to contact the team at PFM.
All our staff have dental specialist knowledge and are set to assist you with any problems that this latest HMRC announcement may bring.
