The National Association of Specialist Dental Accountants (NASDA) is encouraging dental practices to get a dispensation from HM Revenue and Customs (HMRC) so they can pay the professional fees of DCP staff without being taxed.

The dispensation from HMRC recognises that payment of the GDC's annual retention fee on behalf of employees should be a benefit in kind. This would normally require the dental practice to fill in the form P11D to report the benefit. However, because the DCP can claim this fee as an expense, there is no tax involved.

Bob Cummings, tax specialist for NASDA explained, ‘This amounts to a paper chase in which no tax is involved. The dispensation absolves the practice and the DCP from the unnecessary paperwork and is something NASDA accountants will be encouraging their dental practice clients to have in place.’ For more information on NASDA, see www.nasda.org.uk.