Associate Dentists who work for a company instead of themselves have significant differences.
Regulations governing workplace health and safety must be followed by company directors. Independent contractors don't.
Dentists who work for themselves are not taxed on their eye exams or glasses.
The expenditure must be wholly and exclusively for work purposes in order to qualify for a tax deduction. This guiding principle has been applied in numerous tax cases over the years.
Glasses do not ONLY warn against working while driving. They are not appropriate for use outside of work if they are EXCLUSIVE.
Company director dentists are eligible for tax breaks on their eye exams and computer-related eyewear.
Health and safety regulations provide computer screen users with a tax deduction for:
prescription eye exams and glasses are needed ONLY when using a computer screen.
Glasses for any purpose other than using a computer cannot be deducted from income and are not tax-free employee benefits.
Tax Tips
1. Get two prescriptions if you require glasses for screen use and everyday use. One for everything else and one just for computer work. The prescription for computer use is paid for with company funds, and the difference for no computer use is paid for with personal funds.
2. If the cost of the glasses is £50 or less, they can be provided as a small perk paid for by the business.
3. When non-company funds are used for purchases, HMRC does have complicated regulations governing the reimbursement of expenses. The cost of eye exams is covered by one of these regulations. These transactions must be made directly with the optometrists and paid for with company funds; they cannot be reimbursed after being paid for with personal funds. For company directors, this is not a problem, but if you are paying for a secretary, employee, or another director, there is a workaround. You must either give them a voucher in advance or a letter stating they have permission to test their eyes and that the company will reimburse them after the test if personal funds were used to purchase the eye exam without the company's prior written consent. Any reimbursement is categorized as earnings, processed through payroll, and subject to the payment of income tax and national insurance contributions. Making this kind of reimbursement is not tax-efficient for business owners.
4. if personal funds were used to purchase the eye exam without the company's prior written consent. Any reimbursement is categorized as earnings, processed through payroll, and subject to the payment of income tax and national insurance contributions. Making this kind of reimbursement is not tax-efficient for business owners.
Tax Deductions for Associate Dentists
A full tax deduction for all associate dentists (with or without prescription lenses) is available for:
· dental loupes
· toughened protective eyewear when using:
· power tools
· laboratory equipment