What Is Corporation Tax for UK Dental Practices?
Corporation Tax is the tax UK limited companies pay on their taxable profits — including income from NHS work, private treatments, plan income, and investment returns.
As of April 2023, Corporation Tax is charged on a sliding scale from 19% to 25%, based on total profits:
- 19% on profits under £50,000
- 25% on profits over £250,000
- Tapered rate between £50K and £250K
Why Corporation Tax Matters for Dental Practice Owners
Corporation Tax is one of the largest single cash outflows in a profitable dental practice — often landing in January, just after holiday spending and year-end bonuses.
Without proactive planning:
- You get hit with unexpected 5- or 6-figure tax bills
- You erode your 12-week buffer
- You mistakenly overdraw in dividends — triggering personal tax issues
Example:
| Net Profit | £215,000
| CT Owed (2024) | ~£50,000
| Due Date | 9 months after year end (e.g., 31 Dec for 31 Mar YE)
| Status | Hidden risk if not provisioned monthly
DentPulse tracks this daily — not just once a year.
What Counts Toward Corporation Tax?
| Income | Included? |
| NHS contract revenue | ✅ |
| Private treatment income | ✅ |
| Plan income (Denplan, etc.) | ✅ |
| Invisalign, implants, cosmetic | ✅ |
| Grants (unless exempt) | ✅ |
| Investment income (bank interest) | ✅ |
| Personal drawings/dividends | ❌ (Taxed separately) |
Only limited companies pay Corporation Tax. Sole traders and partnerships use Self Assessment instead.
How DentPulse Manages Corporation Tax Automatically
| Feature | Function |
| Live CT Exposure Tracker | Calculates your real-time liability based on profit |
| Payment Due Date Alerts | Never miss a 9-month deadline |
| Cash Flow Forecast Sync | Includes tax in all forward planning (CFFP™) |
| Profit-to-Pocket™ Planner | Links Corporation Tax to take-home and dividend safety |
| Best–Worst–Likely Scenarios | Model multiple profit outcomes and tax impact |
DentPulse replaces guesswork with live financial visibility — month by month.
DentPulse Tip™
Tax surprises aren’t just stressful.
They’re totally avoidable.Paying Corporation Tax isn’t the problem.
Not planning for it is.DentPulse automates this — with daily updates and smart alerts.
Related Glossary Terms
- Profit-to-Pocket™ – Connects business profit to personal income
- CFFP™ – Pairs cash inflow with upcoming tax outflow
- Tax Year Planning – Optimises drawings and reliefs before deadlines
- Self Assessment (for Dentists) – If not incorporated
- 12-Week Cash Buffer – Helps ensure tax isn’t paid from overdraft
Glossary Summary Table
| Term | Meaning |
| Corporation Tax | Tax on limited company profits in the UK |
| Rate | 19%–25% based on profit level (from April 2023) |
| Due Date | 9 months and 1 day after company year-end |
| DentPulse Advantage | Tracks exposure in real time, forecasts impact, prevents overdraws |
