Doing OK? HMRC is keeping a closer eye on you… Michael Lansdell

High Net Worth Individuals (HNWIs) are people whose investible assets exceed £10m. The latest figures from the UK show that the HNWIs population currently stands at 552,800 (and growing) and in 2014/15, they paid over £535,000 a head in income and capital gains tax (CGT).[i]

The Public Accounts Committee (PAC) has been critical of how HMRC handles HNWIs however, and in a report issued in January claimed that not enough is being done to deal with tax evasion and avoidance within this group.[ii]

If this all sounds a million miles away from anything that dental practice owners should concern themselves with, don’t be fooled! The government wants to squeeze more tax out of more of the population and HMRC is now starting to look closer at those who are just inside the upper tax bracket. Many dental practice owners will find themselves in this category.

In 2011, the Affluent Unit was set up to look at individuals with incomes over £150,000 and/or a net worth between £1m and £20m. The Unit has almost doubled in size since it began, increasing its numbers of employees by 20 per cent. The Affluent Unit’s prime targets commonly include those who have property portfolios/bank accounts that are based offshore. You will also come under the scrutiny of the Unit if you habitually file self-assessment returns late and use (or have used) tax avoidance schemes.

An affluent individual is likely to have more complex tax affairs, so it is common sense that HMRC will want to take a closer look to ensure that everything is above board. The services of a specialist accountant are essential to help with tax planning so you can be confident that you are doing everything by the book. Lansdell & Rose has an expert team with extensive experience in advising dental practice owners on money matters.

If you own a thriving, busy practice and are not already in the high earners’ tax bracket, you soon will be! As HMRC expands its taskforces set up to claw back unpaid tax, you don’t want to be penalised for a mistake. Stay on its good side by working alongside experts to ensure your tax affairs run smoothly. The fact is that even if you are a higher or additional rate taxpayer, there are perfectly legitimate ways to reduce your tax bill while staying legally compliant.

To find out more, call Lansdell & Rose on 020 7376 9333,

Or visit www.lansdellrose.co.uk