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Dental Practice COVID-19 Viability Planning Forecast template...
UNW’s Dental Business Unit
 

Dental Practice COVID-19 Viability Planning Forecast Template

We have taken the initiative of preparing a template COVID-19 Viability Forecast for you as a gesture of support and goodwill.

The purpose of the Forecast is to help you estimate how much monthly cash deficit (or, if you are very lucky, surplus) your practice will incur during the COVID-19 crisis.

Click here to download our ‘NHS / Mixed practice – COVID-19 Viability Planning Forecast’ template
Click here to download our ‘Private practice – COVID-19 Viability Planning Forecast’ template
In order to complete your own forecast, you will need to insert numbers into the yellow shaded cells.

First populate the Current position (first two columns) based on your last set of annual accounts.

Then estimate a “Close Down” position in the middle two columns.

Finally, for NHS and Mixed practices, in the right hand two columns, we have set up a basis for forecasting operation of the practice under the CDO 2020/21 NHS contract rules letter of 25 March.
As these new rules require clarification (particularly for mixed practices) at this early stage, please bear in mind that the Forecast is no more than a guess as to what might transpire.

We are aware that discussions are taking place with NHS England which hopefully will lead to clarification soon.

Also, as the NHS income will be reduced to allow for reduced “Consumable costs”, but we don’t yet know by how much, we have initially set this reduction at 20% (cell Q11). Once we know what the actual percentage is the Forecast can easily be amended by simply changing the cell showing 20% to whatever percentage is set by NHS England.

Hopefully completing the Forecast will be something you can do yourself, with the assistance of a numerate friend, or even your own accountant.


What should you do now?

We would be very happy to help you in finalising your own practice COVID-19 Viability Forecast, and of course taking it to the next stage of helping you to arrange funding support if that is required.

If you would like us to help you further, then a short phone call or e-mail exchange will also be at no charge to you. If you need more than this, then a one-off fee will be agreed with you on completion of our work.

UNW clients need not take any action as we will be contacting them individually with a completed version which we have prepared as a gesture of goodwill and support.

To discuss in more detail, please contact me at alansuggett@unw.co.uk or on 07860 246718.

Kind regards,

Alan Suggett
Dental Partner – UNW LLP

An update on furloughing of directors of dental limited companies

Initial thoughts in relation to company directors being furloughed were that this would not be possible – in order for an employer to claim the government grant for a furloughed employee, the employee must not carry out ANY work for the company.

However, in a conference call with the CBI on Friday 27 March, a representative of the Treasury said that if directors are furloughed, they can still carry out their statutory duties as directors. This is clearly a very positive message and may allow some directors to be furloughed however care will be required to limit their work to statutory duties.

When deciding if director furloughs are appropriate for dental limited companies – please bear in mind the following:

1. Dentist directors – even though the practice might be completely closed down, are any of  the directors to be furloughed performing any work at all other than “Statutory duties” (which represent only attending to the Statutory affairs of the company such as correspondence with the Registrar of Companies)? If for example the company has an NHS contract, and the dentist director is asked to assist the NHS under the revised NHS terms, then this is not Statutory work. 

2. Spouses of dentist directors who are also directors – if a spouse is furloughed then please consider how you might answer an enquiry from HMRC asking what duties the spouse normally performs (i.e. in non-crisis times). In order for a company to be able to claim tax relief on salaries paid to an employee (including a director) the salary paid must be commercially reasonable in relation to the work performed by the employee. 

3. HMRC – we are also aware that HMRC intend to retrospectively audit these arrangements, so it is essential that the finer points of working practices are considered before entering into furlough and making a grant claim.

4. Legal we advise anyone considering furloughing directors to take legal advice, as in addition to taxation, employment law must be considered.

To discuss in more detail, please email alansuggett@unw.co.uk or call 07860 246718.

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Disclaimer

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and to the extent permitted by law, UNW LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you/or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
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