What Is Tax Year Planning for Dentists?
Tax Year Planning refers to proactively structuring your income, expenses, and investments within the UK’s tax year — which runs from 6 April to 5 April — to minimise your tax liability and maximise take-home income.
It includes timing:
- Salary and dividend drawings
- Capital investments and allowances
- Pension contributions
- Bonus schemes or associate incentives
- Equipment leasing vs purchase decisions
The smartest dentists don’t plan at year-end.
They design the entire year around the tax calendar.
Why Tax Year Planning Matters for Dental Practice Owners
Without tax year planning, most dentists:
- Draw without understanding tax impact
- Miss the 31 March cutoff for Corporation Tax planning
- Overpay in January and again in July (due to poor Self-Assessment prep)
- Leave tax-saving opportunities (e.g. pensions, AIA, R&D) on the table
- Rush decisions in March, often too late to make meaningful changes
Example:
| Action | Done in March | Done in May |
| Equipment purchase | Saves £9,500 in Corporation Tax (AIA) | Misses deadline — no relief until next year |
| Dividend drawing | Tax-efficient if within allowance | May trigger 33.75% higher band |
DentPulse plans these dates automatically — months in advance.
Key Dates in the Dental Tax Year (2024–25)
| Date | Action |
| 6 Apr | New tax year starts |
| 31 Jan | Self-Assessment deadline + payment due |
| 31 Mar | End of company year for most dental limited companies (if aligned) |
| 5 Apr | Personal tax year ends |
| 31 Jul | Second Payment on Account for Self-Assessment |
| Ongoing | Dividends, salaries, and tax exposure tracked monthly |
How DentPulse Supports Tax Year Planning
| Feature | Function |
| Tax Exposure Tracker | Forecasts Corporation + Personal tax in real time |
| PPP™ Overlay | Aligns drawings with optimal tax timing and retained profit |
| Scenario Planner | Shows impact of investments, bonus schemes, and pension moves |
| Year-End Optimiser | Auto-flags last-minute reliefs and savings opportunities |
| Dividends Control Tool | Stops drawings that will breach thresholds before 5 April |
DentPulse ensures you never miss a relief, deadline, or planning window again.
DentPulse Tip™
Tax planning isn’t a task —
it’s a rhythm you design your business around.
The dentists who win financially don’t think in months. They think in tax years.
Related Glossary Terms
- PTP™ – Profit-to-Pocket – Aligns take-home income with tax safety and timing
- Self-Assessment – Tax return based on how you structure income during the tax year
- Corporation Tax – Optimised by aligning CapEx and profit retention
- AIA – Annual Investment Allowance – Use before 31 March/5 April cutoffs
- Scenario Planning – Helps forecast tax impact before you act
Glossary Summary Table
| Term | Meaning |
| Tax Year Planning | Designing income, expenses, and investments to align with the UK tax calendar |
| Purpose | Reduce tax liability, optimise profit extraction, and avoid deadline stress |
| Financial Impact | Saves thousands in tax and creates confident, strategic decision-making |
| DentPulse Advantage | Tracks deadlines, calculates exposure, and suggests optimal timing — all in real time |
