What Is IR35 in Dentistry?
IR35 is UK tax legislation designed to prevent “disguised employment,” where individuals supply services through a limited company but work as if they were employees.
In dentistry, IR35 applies when associates operate through their own limited company and HMRC argues that their working arrangement is effectively employment, not self-employment.
Why Does IR35 Matter for Dentists?
IR35 can have major financial implications for both associates and practice owners:
- For Associates: If caught by IR35, income is treated as salary. This removes tax advantages of operating through a limited company and can increase tax/NI liabilities significantly.
- For Owners: If HMRC determines IR35 applies, the practice could be liable for PAYE, employer NI, and penalties.
Example:
- Associate dentist works only at one practice, has no real control over hours, fees, or patients.
- HMRC could argue this is employment in disguise → IR35 applies → practice must deduct PAYE/NI as if they were staff.
Key IR35 Tests for Dentists
| Test | Meaning | Example in Dentistry |
| Control | Who decides hours, fees, patient mix | If practice dictates schedule & pricing → risk of IR35 |
| Mutuality of Obligation | Is the practice obliged to offer work and associate obliged to accept | If yes → risk of IR35 |
| Substitution | Can associate send a locum substitute | If not allowed → risk of IR35 |
How Does DentPulse Help with IR35?
| Feature | Function |
| Associate Contract Analysis | Tests contracts against IR35 risk factors |
| APEX™ Integration | Shows true financial contribution per associate |
| Scenario Modelling | Models cost of moving an associate from self-employed to payroll |
| Tax Module | Forecasts PAYE/NI exposure if IR35 applied |
| Profit-to-Pocket™ Overlay | Shows impact of IR35 on both owner and associate income |
DentPulse provides practice owners with clarity on IR35 risk and helps structure associate agreements that align with both HMRC rules and practice profitability.
DentPulse Tip™
“IR35 is less about what your contract says and more about how you actually work.
If your associates look, feel, and behave like employees, HMRC will eventually call them employees.”
Related Glossary Terms
- Associate Pay Structure – core to IR35 risk analysis
- Associate Dentist Pay – differentiating employed vs self-employed roles
- APEX™ – measures associate profit contribution
- Limited Company for Dentists – where IR35 issues often arise
- Self-Assessment for Dentists – impacted if IR35 applies
Glossary Summary Table
| Term | Meaning |
| IR35 in Dentistry | UK tax rule preventing disguised employment of associates |
| Risk | Associates operating via Ltd but treated as employees |
| DentPulse Advantage | Contract analysis, scenario planning, tax forecasting |
