1. Register for Self-Assessment Tax Returns Early
If you're newly self-employed, you must register for Self-Assessment tax returns with HMRC by 5th October following the end of the tax year in which you started working for yourself. Failure to do so can result in penalties.
👉 Tip: Register as soon as possible through the HMRC website. You’ll need your National Insurance number and personal details.
2. Keep Accurate Records of Your Income and Expenses
As a self-employed dental nurse, you must keep track of all income earned and any business expenses incurred throughout the tax year (6th April – 5th April). Good record-keeping is essential to ensure your tax return is correct and to claim allowable expenses.
What Records to Keep:
✔️ Invoices and receipts for work completed ✔️ Bank statements ✔️ Mileage logs (if you travel for work) ✔️ Equipment and uniform purchases ✔️ Any professional memberships or indemnity insurance payments
👉 Tip: Consider using accounting software such as QuickBooks, FreeAgent, or Xero to streamline your record-keeping.
3. Know What Expenses You Can Claim
Reducing your tax bill legally means claiming all allowable expenses. As a self-employed dental nurse, some expenses you can deduct include:
- Professional fees (GDC registration, indemnity insurance, CPD courses)
- Work-related travel (fuel costs, train/bus fares if not reimbursed by an employer)
- Uniform and equipment (scrubs, gloves, dental tools)
- Home office expenses (if you do admin work from home)
- Marketing and advertising costs (if you promote your services)
👉 Tip: Keep all receipts as proof of your expenses to avoid any issues with HMRC.
4. Set Aside Money for Tax and National Insurance
Unlike PAYE employees, self-employed dental nurses do not have tax automatically deducted. It’s crucial to set aside money throughout the year to cover:
- Income Tax (20% basic rate for earnings over the personal allowance of £12,570 in 2023/24)
- Class 2 National Insurance (£3.45 per week if earning over £12,570)
- Class 4 National Insurance (9% on profits between £12,570 – £50,270)
👉 Tip: A good rule of thumb is to save 20-30% of your earnings in a separate savings account for tax purposes.
5. Understand Payment Deadlines
Filing and paying your tax bill on time is essential to avoid penalties.
- 31st January – Deadline for filing online tax returns and paying any tax due
- 31st July – Deadline for making your second payment on account (if applicable)
Late filings result in automatic penalties starting at £100 and increasing over time.
👉 Tip: Set calendar reminders and submit your return well before the deadline to avoid last-minute stress.
6. Consider Payments on Account
If your tax bill exceeds £1,000, HMRC requires you to make Payments on Account, which are advance payments towards your next tax bill. These are due in two instalments:
- First payment – 31st January
- Second payment – 31st July
👉 Tip: If your income varies, you can apply to reduce Payments on Account via your HMRC online account.
7. Seek Professional Help If Needed
Self-assessment can be complex, and mistakes can be costly. A professional accountant or tax adviser can help ensure accuracy, claim the correct deductions, and potentially save you money. When you become a self-employed dental nurse at Cavity, we will support any help you may need by pointing you in the right direction to make the whole process easier and stress-free.
👉 Tip: If you’re unsure about anything, consulting a tax professional can be a worthwhile investment.
Final Thoughts
Completing your Self-Assessment tax return as a freelance or self-employed dental nurse doesn’t have to be stressful. By staying organised, keeping accurate records, and being aware of deadlines, you can manage your tax affairs efficiently and avoid unnecessary penalties.
Take control of your finances today by implementing these tips, and you’ll have peace of mind when tax season arrives!