Start now if you want a relaxed retirement advise lawyer David Griffiths of Maxwell Hodge and accountant David Paul of Graham Paul Chartered Accountants. Both members of NASDA (the National Association of Specialist Dental Accountants), they co-hosted a seminar at the British Dental Association conference at which they highlighted some of the key obstacles to a smooth exit strategy on retirement.
David Paul concentrated on the new challenges with superannuation since the introduction of the contract in 2006. Describing superannuation as a passport to the NHS crown jewels, the pension, he told his audience that paying superannuation was the best investment they were likely to make. The NHS pension was the fourth biggest scheme in the world, he said, only being outstripped by the Chinese army, the Indian railway and Walmart.
But, care needed to be taken as a result of changes following the 2006 contract and he listed some of the ways in which problems can occur, and these included:
• the omission of information on the annual reconciliation form,
• clawback on the NHS contract
• and associate incorporation.
He stressed the importance of checking and reconciling the SC86C sheet which itemises the level of pensionable pay. Each member of the NHS pension scheme had several years in which to check and amend it, he said. David also recommended that dentists should on a regular basis ask the NHS Pension Agency for a pension forecast as well as a full statement of superannuable service, including the dynamising sheet.
Meanwhile, David Griffiths, a member of NASDA’s lawyers’ group, looked at ways in which dentists can sell their practice to maximum advantage. While being a sole practitioner may make for an easier life in some ways, there are more difficulties on retirement. If you are in a partnership or expense sharing arrangement, there is a natural successor and, if you are in the NHS, someone to take over the contract.
It is important, said David, to have a robust partnership or expense sharing agreement in place at the outset so that when a principal leaves the practice, they are automatically entitled to their share of the practice assets, including goodwill. All in all, their message was that the manifold problems which might crop up for a dentist cannot be deferred and with effective planning, a well-rewarded retirement lies ahead.
Note to Editors
The National Association of Specialist Dental Accountants (NASDA) was formed in 1998 to promote high standards in dental accountancy and business advice. It now consists of around 37 firms throughout the UK as well as a lawyers’ group with 13 law firms specialising in dental issues. Members abide by the standards of the NASDA charter and meet twice a year to share information. To speak to a member in your area, go to the website at www.nasda.org.uk or for more press information, call Caroline Holland on 020 8679 9595
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