Tax Classification of Dental Associates & Dental Hygienists


Dental Practitioners will have been aware that the Revenue Commissioners have been considering the tax status of Dental Associates and Dental Hygienists since the latter part of 2010. Revenue have commenced issuing correspondence to all practitioners indicating that it is their position that all such engagements represent an employment contract and individuals who fit into the category of Dental Associates and Dental Hygienists should be engaged as employees via a contract of employment. This is effective from the 1st January 2012.

The Irish Dental Association and its professional advisors are requesting that the  effective date is amended to the 1st January 2013 to address a number of the practical issues that arise given the decision is only being communicated in April 2012. However, what is apparent, is that this change will be implemented and Dental Practitioners, Dental Associates and Dental Hygienists need to take action now to ensure they maintain Revenue compliance.

The most significant impact of the policy being adapted by the Revenue Commissioners will be the application of employers’ PRSI on payments. This represents a real cost to the Dental Practitioner who is engaging the Dental Associate or Dental Hygienist. This will amount to a 10.75% additional charge to the current payments made for these services.

Given what has occurred in other healthcare sectors (General Practitioners, Pharmacists etc) we have anticipated that this was a likely outcome from the Revenue Commissioners review of the sector and have developed a variety of solutions that will assist both the Dental Practitioner that owns the practice and the Dental Associate/Hygienist providing support services to the practice. Each solution will allow all parties to optimise their drawings from the business, maintain current income and personal tax position and ensure that all parties remain compliant with Revenue guidelines.

View the circular which issued to the Irish Dental Association  members. 

Should you wish to explore potential options available to you in respect of the above please do not hesitate to contact John or one of the Partners now who can assist you with same 014977651.