Profession And Country Braced For Wednesday’s Budget
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- Published: Tuesday, 14 March 2023 06:06
- Written by Guy Tuggle
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Set against a background of inflation figures that are running at a forty year high and an economy that is hovering on the edge of recession, Wednesday’s Budget Statement will be watched especially keenly by business owners and workers across the country.
The aspect which may have the largest effect on dentists’ financial planning has been the widely reported possible rise in Life Time Allowance [LTA] and yearly pension contribution limits. If this is announced, those levels having been frozen for many years, this will have an effect on both retirement planning and on tax charges which have encouraged earlier retirement of the most senior experienced colleagues in the dental and medical professions, particularly in the hospital systems.
The proposed rise of 6% in Corporation Tax looks set to go ahead which will have unwelcome implications for all owners who trade as limited companies and so it is to be hoped that the Chancellor will find a way to incentivise business investment via sympathetic tax treatment.
Practice owners will also be keenly hoping for additional help with their practice energy costs.
Beset by numerous woes, dental practice owners will be hoping for an announcement of more generous childcare terms. Childcare costs are thus a barrier to employment for many dental workers.
Iain Stevenson, Head of Dental at Wesleyan Group said “This budget is an opportunity for the Chancellor to help improve dental services.
Dental practices are currently facing a one-two punch in the form of a planned Corporation Tax rise and the end of the ‘super deduction’, which provided tax relief on investment.
While it’s widely expected that the Corporation tax rise will go ahead, we’re urging the government not to make the mistake of taking a backward step on encouraging business investment.
I’d also like to see a significant increase to the NHS spending budget, earmarked specifically for NHS dentistry, a CPI-linked increase to UDA rates, and measures that would provide more support for dentists saving for their retirement. This means reviewing and increasing annual and lifetime allowance limits to incentivise rather than punish pension saving.”
Wesleyan Group brands itself as ‘the specialist financial services mutual for dentists’ and Iain Stevenson added “beyond the budget, dentists need to be aware that the coming weeks will bring a new tax year and already planned changes to tax and allowances with it.
Dentists should be reviewing their financial plans with these in mind and urgently looking at how they can make the most of this year’s tax-free ISA savings allowance before it expires in April.”
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