What Are Writing Down Allowances (WDA) for Dentists?
Writing Down Allowances (WDA) are a form of capital allowance that let dental practices spread the tax relief on qualifying assets over several years, instead of claiming 100% upfront like the Annual Investment Allowance (AIA).
WDA applies when:
- The AIA limit (£1 million) has already been used, or
- The asset doesn’t qualify for AIA (e.g., cars with private use).
Why Do Writing Down Allowances Matter for Dental Practice Owners?
Large asset purchases can’t always be claimed immediately under AIA. WDA ensures you still get relief — but gradually.
- ✅ Smooths tax deductions over time
- ✅ Keeps taxable profit lower year after year
- ⚠️ Slower relief = less immediate cash flow benefit
Example:
- Digital X-ray machine: £80,000
- AIA used up → claim via WDA at 18% main pool rate
- Year 1 deduction = £14,400
- Year 2 deduction = 18% of remaining balance (£65,600 = £11,808), and so on
What Are the Main WDA Rates Relevant to Dentistry?
| Pool | Rate | Typical Assets |
| Main Pool | 18% | Dental chairs, IT hardware, scanners, cabinetry |
| Special Rate Pool | 6% | Integral features (electrical, heating, air conditioning) |
| Single Asset Pools | 18% or 6% | Cars (depending on emissions), high-cost items |
How Does DentPulse Track WDA Automatically?
| Feature | Function |
| Capital Allowance Tracker | Allocates purchases to the correct pool (main/special) |
| Rolling Balance Reports | Shows year-on-year WDA deductions |
| Tax Module Integration | Syncs allowances with Corporation Tax forecasts |
| Profit-to-Pocket™ Overlay | Connects gradual relief to owner take-home planning |
DentPulse makes sure every qualifying asset — even those not covered by AIA — is optimised for tax efficiency.
DentPulse Tip™
“WDA is your safety net when AIA runs out.
It’s slower, but still essential for protecting long-term profit.”
Related Glossary Terms
- Annual Investment Allowance (AIA) – 100% upfront relief up to £1m
- Capital Allowances – umbrella tax relief on business assets
- Corporation Tax (UK Dental Practices) – reduced by AIA and WDA claims
- Profit-to-Pocket™ – models how tax relief affects safe drawings
- Equipment Loans / Lease Finance – often tied to capital expenditure
Glossary Summary Table
| Term | Meaning |
| Writing Down Allowances (WDA) | Tax relief spread over years when AIA isn’t available |
| Rates | 18% (main pool), 6% (special rate pool) |
| DentPulse Advantage | Real-time pool allocation + tax integration |
