Businesses in the dental sector may come across some specific issues relating to VAT and taxation. By drawing on the expertise of The Proactive Consultancy Group, you can be assured that you will be getting commercially focused, practical advice that will support your day-to-day activities.
Dental Groups Face Specific VAT Challenges
We have extensive experience in managing the specific challenges faced by dental groups and practices. These include:
- Mixed VAT liability of dental activities
- Partial exemption issues
- Corporate and group structures
- Property and expansion projects
- Associate and clinician arrangements
- Technology and centralised operations
Mixed VAT Liability of Dental Activities
Dental groups carry out a mix of exempt and partially exempt activities that adds complexity to their VAT affairs. So it can be advantageous to get expert advice to determine the correct VAT treatment.
Partial Exemption Issues
Our consultants can review dental practice’s activities to discover opportunities to recover VAT on overheads. A review of partial exemption methodologies and of calculations used for recoverable input tax may also be advantageous.
Dental companies may also face disputes about the classification of cosmetic treatments in relation to VAT. A recent dispute between HMRC and Align Technology shows how differences of opinion can have costly VAT implications.
Corporate and Group Structures
Dental groups with multiple entities may seek advice on VAT treatments for shared services and management fee arrangements. The Proactive Consultancy Group can also advise on VAT grouping considerations.
Property and Expansion Projects
Businesses in the dental sector often seek advice from a VAT specialist during practice acquisitions or during projects to build or refurbish surgeries. We can provide insight into VAT on fit-out costs and professional fees, and the best way to approach capital expenditure treatment
Associate and Clinician Arrangements
Dental groups may have various staffing arrangements, including self-employed associates and locum dentists. Expert advice will ensure a complete understanding of the VAT implications of these supply structures.
Technology and Centralised Operations
We can give advice on VAT in relation to shared and centralised services, including dental practice management software and administration centres. We can also help with VAT challenges within procurement functions, and advise on recovering input VAT on central costs.
HMRC Compliance Risks
The Proactive Consultancy Group has extensive experience in assisting dental practices to identify and manage HMRC compliance risks. Areas where we can help include:
- Historic VAT treatment reviews
- Documentation requirements
- Assessments and penalties
- Investigation triggers
When Do Dental Groups Need Specialist VAT Advice?
Dental groups can benefit from an expert review to minimise VAT leakage from day-to-day operations. For example, they may seek a partial exemption review to check for historic underclaimed VAT. This service revisits previous accounting periods to identify incorrect recovery methodologies. A VAT review can also uncover grouping opportunities, such as missed VAT group structures and intra-group charging issues.
View our service pages to learn more about our VAT Healthcheck and Recovery services.
Other scenarios where a dental group may seek advice on VAT is during acquisitions or expansion. It’s not unusual to uncover historic VAT liabilities after an acquisition, so a VAT diagnostic review in these circumstances can be treated as due diligence. Property and facilities development are another area of VAT complexity for dental groups. A specialist capital project review can find incorrectly restricted VAT recovery.
We also support dental practices who find themselves in dispute with HMRC. Our VAT consultants can handle assessments and appeals – including cosmetic treatment VAT disputes. Our consultants can provide an end-to-end service from HMRC assessment to challenge to appeal to litigation support (should that become necessary).
Visit our service pages to see how we can assist with VAT disputes and appeals.
Why use The Proactive Consultancy Group?
With our sector knowledge and experience with dental group structures and treatment classifications, we are ideally placed to give you practical, commercially focused advice that protects practice profitability.