Understanding the Leadership Structure The leadership structure of a dental practice can significantly impact its financial performance. There are two primary models: Principal-led and Associate-led. Principal-led: In this model, the principal dentist owns and operates the practice, assuming full financial and management responsibility. Associate-led: Here, the dentist is a self-employed contractor to the practice, the principal dentist having the responsibility to provide patients and where necessary, to offer assistance and advice. Financial Implications Income Distribution: Principal-led: The principal dentist retains all profits after expenses, potentially leading to higher income but also greater financial risk. Associate-led : Associates receive a percentage of the fees that they generate as income, providing more financial stability but limiting earning potential. Overhead Costs: Principal-led: The principal dentist is responsible for all overhead costs, which can be substantial. Associate-led: The Associate is responsible for a share of the lab expenses that they generate Debt and Risk: Principal-led: The principal dentist is personally liable for any debts or financial obligations incurred by the practice. Associate-led: The associate is not responsible for the practice’s debts and liabilities. Succession Planning: Principal-led: Succession planning can be more complex, as the principal dentist must find a suitable successor or sell the practice. Associate-led: Succession planning can be easier, as associates may have an option to purchase the practice or continue working under new ownership. Financial Considerations When evaluating the financial implications of a Principal vs. Associate-led practice, consider the following factors: Personal financial goals: Are you seeking higher income potential or a more stable income stream? Risk tolerance: How comfortable are you with assuming personal financial risk? Long-term goals: What are your plans for the future of your dental career? Local market trends: Are there any trends that favour one model over the other in your opinion and experience? Conclusion The choice between a Principal-led or Associate-led dental practice sale and purchase depends on your individual circumstances and financial goals. By carefully considering the financial implications of each model, you can make an informed decision that aligns with your professional aspirations and long-term success. Feel free to contact us for more help and advice.

Congratulations to Joanne Nurse on the acquisition of a share in Adventurers Day Nursery in York. Joanne now becomes co-owner of the nursery with Helen Nurse. Many thanks to everyone involved in the transaction, especially Amardeep Nangla for his work done on the property side and all those at Barclays Bank who helped facilitate this transaction. All at Jacobs Legal wish Helen and Joanne all the best for the future and much success in the years to come.

Jacobs Legal Wills and Probate team are here to help you navigate the legal aspects of planning for the future and managing estates. We offer expert advice on a wide range of matters, ensuring your wishes are carried out and your loved ones are protected. Obtaining a Grant of Probate: This legal document grants authority to administer the estate of a deceased person. Our team can guide you through the application process and ensure it's completed efficiently. Dealing with Legacies to Minors: Leaving assets to a minor requires careful planning. We can advise on setting up trusts or other arrangements to ensure the inheritance is managed responsibly until the minor reaches adulthood. Protecting Assets: We can help you develop strategies to protect your assets from potential creditors and minimise the impact of inheritance tax on your estate. Will Disputes (Litigation): Unfortunately, disagreements regarding wills can arise. Our experienced Dispute Resolution Solicitors can provide legal representation if a will is contested. By planning ahead and seeking professional legal guidance, you can ensure your estate is handled smoothly and your wishes are respected. Jacobs Legal are here to support you through every step of the process. Contact jacobs solicitor today on info@jacobs-legal.co.uk or 07776 132339 to schedule a consultation and discuss your specific needs.

Selling your dental practice can be a complex but rewarding process. At Jacobs Legal , we understand the importance of clear guidance during this exciting transition. Here's a breakdown of the key steps involved: Finding the right Buyer/Seller: This initial stage involves connecting with potential buyers (if you're selling) or qualified sellers (if you're buying). This could involve working with a dental broker or advertising the practice directly. Heads of Terms: Once you've identified a suitable match, you'll you may decide with the other side to outline the broad terms of the deal in a "Heads of Terms" document. Alternatively, the broker might prepare these for you. This covers key aspects like purchase price, timelines, any deposit that the broker may require and any contingencies. Due Diligence: Here, the Buyer will delve deeper into the details of the business. Buyers will meticulously examine the practice's financial records, contracts, and equipment to ensure they understand what they're buying. Sellers should expect to provide all relevant documentation. Negotiating the Asset or Share Purchase Agreement: This legal document outlines the specifics of the sale, covering everything from the purchase price and payment terms to warranties and post-sale restrictions. A dental lawyer is crucial in ensuring a fair and comprehensive agreement. Negotiating the Property Contract: If the practice owns or leases the building it operates from, a separate property sales agreement or lease contract will be negotiated. This involves issues like title, warranties, and potential renovations. Transfer of Assets/Shares and Property: Once all agreements are finalised, the ownership of the practice (assets or shares) and the property (if applicable) is officially transferred to the buyer. Completion of the Transaction: This stage marks the formal closing of the sale. All monies are exchanged, legal documents are signed, and ownership is transferred. Registration: Depending on the practice structure, there may be final registration requirements to ensure the ownership change is reflected in official records. Jacobs Legal can guide you through every step of the dental practice sale process, protecting your interests and ensuring a smooth and successful transaction. Contact us today on info@jacobs-legal.co.uk or 07776 132339 to schedule a consultation.

Your Guide to Wills & Probate: Jacobs Legal are here to help you navigate the legal aspects of planning for the future and managing estates. We offer expert advice on a wide range of matters, ensuring your wishes are carried out and your loved ones are protected. Obtaining a Grant of Probate: This legal document grants authority to administer the estate of a deceased person. Our team can guide you through the application process and ensure it's completed efficiently. Taxation Advice for Beneficiaries: Inheriting assets can have tax implications. We can advise beneficiaries on their tax liabilities and help them navigate any tax complexities. Dealing with Legacies to Minors: Leaving assets to a minor requires careful planning. We can advise on setting up trusts or other arrangements to ensure the inheritance is managed responsibly until the minor reaches adulthood. Protecting Assets: Jacob solicitors can help you develop strategies to protect your assets from potential creditors and minimize the impact of inheritance tax on your estate. Will Disputes (Litigation): Unfortunately, disagreements regarding wills can arise. Our experienced solicitors can provide legal representation if a will is contested. By planning ahead and seeking professional legal guidance, you can ensure your estate is handled smoothly and your wishes are respected. Jacobs Legal Wills and Probate Solicitors are here to support you through every step of the process. Contact us today to schedule a consultation and discuss your specific needs.

Congratulations! You've decided to join forces with a fellow dental professional and open a practice together. An exciting venture, but before you start scheduling patients, a crucial step is establishing a strong partnership agreement. Here at Jacobs Legal dental solicitors , we understand the importance of clear communication and defined roles within a dental partnership. Benefits of a Partnership Agreement: Clarity & Transparency: A well-drafted agreement outlines the rights, responsibilities, and financial arrangements of each partner. This clarity prevents confusion and potential disputes down the line. Defined Roles & Decision-Making: The agreement specifies areas of responsibility for each partner, ensuring everyone understands their role and how decisions are made within the practice. Financial Structure: The agreement clearly outlines profit and loss sharing, capital contributions, and how expenses will be handled. This avoids financial disagreements in the future. Conflict Resolution: The agreement can establish a framework for resolving any conflicts that may arise between partners, minimizing disruption to the practice. Exit Strategy: An exit strategy clearly defines what happens if a partner wishes to leave the practice, protecting both parties and ensuring a smooth transition. Key Considerations in Your Agreement: Partnership Type: There are different partnership structures (e.g., profit-sharing, expense-sharing). Choose the one that best suits your situation and clearly define it in the agreement. Financial Contributions & Ownership: Specify how initial investments and ongoing financial contributions will be handled, along with ownership percentages. Management & Responsibilities: Outline each partner's responsibilities in areas like clinical practice, marketing, staffing, and administration. Decision-Making: Define voting rights and how major decisions will be made within the partnership. Dispute Resolution: Establish a process for resolving disagreements between partners, such as mediation or arbitration. Exit Strategy: Detail the process for a partner's withdrawal, including buy-out options and valuation methods. Don't Go It Alone: A dental lawyer specialising in partnership agreements can guide you through the process, ensuring a comprehensive and legally sound document that protects your interests and fosters a successful partnership. By investing in a strong partnership agreement, you and your colleagues can build a secure foundation for your dental practice, allowing you to focus on what matters most - providing excellent patient care. Jacobs Legal is here to help you craft a partnership agreement that safeguards your dental practice and sets you on the path to success. Contact us today on info@jacobs-legal.co.uk or 07776 132339 to schedule a consultation.

Since 6th April 2023, 'dental associates' may not satisfy the classification of self-employed, under tax IR35 legislation. Practices are now obliged to consider whether IR35 applies to their engagements with personal service companies. This means that an associate or hygienist no longer determines their own IR35 status, and the principal who hired them will be the deciding authority instead. The corporate dental groups rely on the status of associates to be self-employed. If upon HMRC scrutinising an associate’s status, they are unable to show that they are self-employed, they will be reclassified as employees and will no longer qualify for tax relief on expenses and other benefits which only apply to self-employed contractors. If an associate dentist or hygienist is deemed an employee, the practice will pay Class 1 National Insurance contributions and provide benefits to their ‘employees’ which will be costlier than the lower rate Class 2/4 national contributions for self-employed associates. If HMRC decides that an associate is an employee, it is the owner of the practice – the ‘principal’ – who will be charged with the unpaid PAYE and employer’s National Insurance contributions. It is therefore extremely important to look carefully at associate and hygienist agreements. In the case where an associate is deemed to be an employee, there will need to be a contractual indemnity clause in relation to tax in favour of the principal, so the principal can recover this tax liability from the associate or hygienist. If you require advice on this, please contact us or call Settlement Agreement Solicitors on 0161 792 8142 or email Jonathan directly at info@jacobs-legal.co.uk

GDC -v- Williams

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