ABSTRACT
Income tax is a direct method of taxation but it can be raised either by direct assessment or by deduction at source. Tax is proposed to confine the explanation of tax system to the business profits and tax of a dental practice. All income is taxed according to its source and each is classified by reference to Schedules set out in tax law each with its own assessment rules. General dental practitioners (GDPs) normally make up their accounts for a period of twelve months, and usually select when their year-end falls. For a new practice there are rules designed to enable the Inland Revenue to get onto the preceding year basis. Whilst a GDP has election rights when they commence in practice, the choice in the closing years lies with the Inland Revenue. When a GDP ceases trading the Inland Revenue cannot tax the GDP beyond the cessation date.
