HMRC is due to change an important long-standing piece of advice from April 2023 which means that associate dentists will have to meet off payroll working rules.

The BDA said that ‘HMRC has for many years accepted that associate dentists are almost always self-employed. Its guidance has included mention of our associate agreement in its employment status manual, but as of April, this paragraph will be withdrawn’.

From 6 April 2023, HMRC will be updating the Employment Status Manual (ESM) — ESM4030 to remove specific occupational guidance for associate dentists.

The majority of dentists work as associates, and appear to fall outside of IR35 rules as they pay to use the facilities at the practice, can choose what hours and when to work, and practices cannot tell them how to do their jobs or what type of work to undertake. In addition, professional development, specialist training, registration and indemnity insurance is self-funded.