My wife is a dentist, any advice about tax? ie how do she reduce tax bill?.. only product we have is isa.
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shahidk
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Hello Shahidk
There are many things your wife can do to reduce her tax liability and assuming she has some private as well as NHS dental income I would look to pension contributions as this could be done on a company and individual level and thus reduce corporation tax as well as income tax. It will also serve as an efficient method of extracting profit from the company whilst also making provision for the future.
There are other avenues you can take as well but to be honest, without knowing much more about your circumstances (which i wouldn't want you to publish on an open forum) it will be unwise to make any kind of formal recommendation to you.
But if you want to get in touch, feel free.
www.darrenasmith.2plan.com
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There are many things your wife can do to reduce her tax liability and assuming she has some private as well as NHS dental income I would look to pension contributions as this could be done on a company and individual level and thus reduce corporation tax as well as income tax. It will also serve as an efficient method of extracting profit from the company whilst also making provision for the future.
There are other avenues you can take as well but to be honest, without knowing much more about your circumstances (which i wouldn't want you to publish on an open forum) it will be unwise to make any kind of formal recommendation to you.
But if you want to get in touch, feel free.
www.darrenasmith.2plan.com
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
There is quite a lot that a dentist can normally do, because of that 'dual' employment between private and NHS earnings there are some interesting wrinkles around pensions that can be beneficial - but watch out because there are still issues if your wife earns more than £130,000 per annum.
If you have some capital, and are not risk averse, there are specialist investments which can offer tax benefits; probably the best known would be the VCT, or Venture Capital Trust - this comes with a 30% income tax break on contributions of up to £200,000 provided the investment is retained for 5 years (although you get the tax break immediately).
Other options may exist depending on whether the practice your wife if part of is a pure partnership, has a mix of legal structures, or if your wife is an employee.
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If you have some capital, and are not risk averse, there are specialist investments which can offer tax benefits; probably the best known would be the VCT, or Venture Capital Trust - this comes with a 30% income tax break on contributions of up to £200,000 provided the investment is retained for 5 years (although you get the tax break immediately).
Other options may exist depending on whether the practice your wife if part of is a pure partnership, has a mix of legal structures, or if your wife is an employee.
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
As John & Darren mention, pensions are one of the key ways of reducing tax. If you are a higher rate taxpayer, then you will reduce your tax bill.
Venture Capital Trusts are, as aready mentioned, another way, but quite risky.
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Venture Capital Trusts are, as aready mentioned, another way, but quite risky.
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
If she is a higher rate taxpayer and you are not, then you should be able to save a significant amount of tax by placing any interest-bearing deposit accounts, and any investments, in your own name rather than in her name or jointly.
The reason for this is that higher rate taxpayers have to pay additional tax on all dividends and interest received. Basic rate taxpayers have no more tax to pay
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The reason for this is that higher rate taxpayers have to pay additional tax on all dividends and interest received. Basic rate taxpayers have no more tax to pay