If you’re a self-employed dentist working in the UK, you may be able to claim Kiroku as an expense in your next self-assessment tax return.
That means you could save 40% on the cost of your Kiroku subscription.
Claiming Kiroku as a tax expense
Many dentists in the UK are self-employed. This means they can deduct eligible running costs as expenses when calculating their taxable profit.
HMRC has a category called “office costs”, and under ‘Stationery’ it says:
“You can claim expenses for…computer software if your business makes regular payments to renew the licence (even if you use it for more than 2 years)”
If you’re self-employed, ‘your business’ is you! And Kiroku is ‘computer software that you make regular payments for’, as you pay your Kiroku subscription monthly or annually.
Ka-ching!
As a Kiroku customer, we send you tax invoices over email in line with your chosen billing frequency. You can use them to calculate and complete your tax return. Historic invoices can be accessed from within your Kiroku account.
How much could you save?
Here’s a worked example of how much you could save, using the government’s self-employed tax calculator for someone based in England, Wales and Northern Ireland.
Kiroku’s monthly subscription is £29.99 + VAT = £431.86 per year including VAT.
Imagine you had a taxable income (pre-Kiroku) of £60,000 per year or £5,000 per month. In this scenario, you’d pay £13,888.60 per year in National Insurance and Income Tax.
Now let’s imagine your Taxable Income for the year is £431.86 lower, so £59,568.14 or £4,964.01 per month.
In this new scenario, you’d pay £13,707.16 per year in NI and tax.
That’s a saving of £181.44, equivalent to a whopping 42% of your total Kiroku subscription for the year! If you’re based in Scotland, you’d save the equivalent of 44%.
It’s worth being aware that there are some exceptions when you can’t claim Kiroku as an expense, for example, if you use your £1,000 tax-free ‘trading allowance’.
Always check with your accountant
You’ll probably have probably worked out that there are all sorts of quirks in the tax system, so we recommend always double-checking with your accountant that you can definitely claim Kiroku as an expense.
If you're a self-employed dentist, you can also claim tax relief on your professional indemnity insurance as a legitimate business expense. If you're with our partner, Densura, that means you could not only save up to 10% off your medical malpractice, but also save by claiming tax relief on the insurance.
If you’re employed, then you won’t be able to claim Kiroku as an expense for tax purposes.
If you’re on a practice plan and paying through a limited company, then you may be able to claim Kiroku as a business expense in order to lower your corporation tax bill. We recommend checking with your accountant or tax advisor on this.
