From 6/4/23 Associate Dentists will have to use the common tests to determine whether they are employed, or self-employed.
The BDA standard contract – for those who work as a dentist, at a practice which is not owned by them, and pay a licence fee for its use – was the basis for an HMRC-operated concession that saw those dentists automatically classified as self-employed, and their earnings as trading income.
As a result of a review finding that the agreed contract was seldom adhered to either in letter or practice, HMRC have updated ESM4030 (the Employment Status manual) meaning that the employment status of new and existing Associate Dentists must be assessed using the usual employment tests.
The CEST Tool from HMRC is the first stop for those keen to check their contract or the trading status of their work. If you need to discuss this with Jo, please run the CEST tool as well as you can and send the result to Jo@BPB.Accountants – it will help expedite the conversation saving time and money.