Help for SME / Small Business Dental Practices
A Healthcare Industry Report titled “Plimsoll Industry Analysis – Dental Practices” published by Plimsoll Market Analysts suggests that from approximately 37 smaller firms in the UK dental industry, about 26 are vulnerable to takeover through restricted cash flow and loss of market presence.
Through the Plimsoll Analysis rating system, the analysts gave these smaller companies a danger rating reflecting their cash deficiencies. Where larger firms can rely on cash flow to adjust operational efficiency, smaller companies without the cash flow are at a disadvantage to do so, making them prime opportunities for consolidation or take over. However, UK government changes to budget may assist these smaller firms struggling with cash flow and potential takeover issues.
In the Chancellor’s 2010 Budget Report during March 2010, key points of consideration were offered for smaller businesses, such as dental practices. Besides key points on tax, additional points include: 12 month relief on small business rates from October 2010; double annual investment allowance to £100,000 for 100 percent tax deduction on qualifying capital expenditure; 10 percent capital gains tax on first £2 million proceeds of dental practice sale; new business loans for financing; Small Business Credit Adjudicator for credit concerns; tax relief through HMRC Business Payment Support Service; £900 annually for environmental conscious dental businesses run from home; and introduction of UK Finance for Growth and Capital Growth Fund.
These measures, including reforms on tax, may be of assistance to small dental businesses in need of support. Further advice is available through the British Dental Association.
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