Practicing as a Self-Employed Dentist in Wales? Incoming HMRC Changes Will Affect You

Dentists who are practicing as self-employed Associates will be affected by the very recent announcement from HMRC regarding their employment and tax status. In Wales, from April 2023, it will no longer be enough for Associates to rely on the BDA Standard Associate Contract to prove they are self-employed. They will also need to complete the online self-employment status tool (Check Employment Status for Tax) on the Government website to check their position.

The change comes as a result of HMRC announcing they will be withdrawing the ESM 4030 guidance in April 2023. This guidance currently provides a near automatic self-employment status for self-employed dentists who are engaged under the standard BDA template contract.

Rhianydd Llewellyn, an Associate Solicitor in the Healthcare team at JCP Solicitors, said: “This change is something Associates need to be aware of and act upon in order to ensure their tax affairs are all in order. HMRC has announced that the CEST tool is based on the actual application of an associate contract rather than just the contract wording. HMRC has also said they will take declarations of self-employment status using the tool in good faith if all questions are answered honestly; it is intended to be a change to HMRC guidance only and so whilst it is hoped that this change will not lead to great disruption, this remains to be seen."

The CEST tool to be used by Associates to check their position from April 2023, can be accessed here.

For more information contact Associate Solicitor, Rhianydd Llewellyn on 01792 529645 or email Rhianydd.Llewellyn@jcpsolicitors.co.uk