GDC Fee Increase 2026: Tax Treatment for Dental Associates and Practice Owners

Is the GDC fee tax deductible for dental associates in 2026? In most cases, yes. A self-employed dental associate who personally incurs the General Dental Council Annual Retention Fee for the purposes of their dental work can normally record it as an allowable professional cost.

The General Dental Council confirmed in October 2025 that the Annual Retention Fee would increase to £698 for dentists and £108 for dental care professionals. The previous rates were £621 for dentists and £96 for DCPs. This represents an increase of approximately 12.4% for dentists and 12.5% for dental care professionals.

The increase followed the GDC’s consultation on its Corporate Strategy for 2026 to 2028 and the funding required to deliver it. The British Dental Association responded that the profession was already under substantial financial pressure and that the regulator needed to demonstrate the value of the additional money raised.

For an individual associate, a £77 increase may appear relatively modest when compared with indemnity, laboratory fees, equipment and other professional costs. However, the tax treatment still needs to be correct. For a dental group paying registration fees for dozens of employees, the combined cost can become a meaningful employment and management-accounting item.

This guide explains:

• How self-employed dental associates claim the GDC fee
• How employed dentists and dental care professionals obtain tax relief
• What happens when a practice pays or reimburses the fee
• How payments for self-employed associates should be recorded
• How the expense should be entered into Making Tax Digital records
• How dental groups should budget and account for the total cost

Kudos Accounting provides specialist accounting support for dentists and dental practices, including Self Assessment, allowable-expense reviews, payroll, bookkeeping and practice advisory services.

What is the GDC Annual Retention Fee?

The Annual Retention Fee, commonly called the ARF, is the fee registered dental professionals must pay to remain on the GDC register and continue practising legally in the UK.

The fee applies even where a registrant has no direct patient contact during the relevant period. Each registrant remains responsible for ensuring that payment and renewal requirements are completed on time. If the fee is not paid by the relevant deadline, the registrant’s name may be removed from the register and they will not be able to practise legally while unregistered.

Payment can be made through MyGDC using:

• Card payment
• Annual Direct Debit
• Quarterly Direct Debit instalments

The standard annual renewal deadlines are:

The current fee and payment schedule should always be checked with the GDC before renewal because fee amounts can change.

Dental care professionals covered by the DCP fee include:

• Dental nurses
• Dental hygienists
• Dental therapists
• Dental technicians
• Clinical dental technicians
• Orthodontic therapists

Why did the GDC fee increase?

The GDC stated that the increase was connected to its Corporate Strategy for 2026 to 2028, its strategic priorities and the funding required to deliver those plans. It also committed to additional efficiency savings over the following five years.

The increase was not welcomed by the profession. The BDA described dentists as facing significant financial pressure and called on the regulator to justify the value of every additional pound collected.

The impact is particularly relevant for practice owners managing several cost pressures at the same time, including:

• Higher employment costs
• Increased supplier and laboratory charges
• Recruitment and retention pressures
• Investment in equipment and technology
• NHS and private income-management requirements
• Professional registration and indemnity costs

A practice that pays GDC fees for employees may therefore be offering a commercially valuable staff benefit. However, the practice must record the payment correctly and confirm whether HMRC’s professional-subscription exemption applies.

The GDC has stated that it will adjust the ARF as needed from 2027. Other than in exceptional circumstances, it expects future increases not to exceed the Consumer Price Index. This gives practices some planning guidance, but it does not guarantee a specific future fee.

Is the GDC fee tax deductible for a self-employed dental associate?

For a self-employed dental associate, the GDC Annual Retention Fee is normally an allowable business cost when:

1. The associate personally incurs or bears the cost.
2. The registration is necessary for their dental work.
3. The cost relates to their existing dental trade.
4. The fee has not already been fully paid by another party without an income adjustment.
5. The same expense is not claimed twice.

HMRC allows self-employed people to claim the cost of trade-body or professional-organisation membership where it relates to the business. HMRC’s Business Income Manual also confirms that annual subscriptions to professional organisations can be deductible where the professional activity generates the taxable profits.

A self-employed associate should normally record the payment in their bookkeeping under a heading such as:

Professional fees and subscriptions

The amount is then included in the appropriate allowable-expense field used by the associate’s tax software or Self Assessment return.

The associate should retain:

• The GDC invoice or renewal notice
• Proof of payment
• The receipt available through MyGDC
• The date of payment
• Details of any reimbursement from the practice
• Details of any Direct Debit instalments

For a wider review of deductions, see the Dental Associate Allowable Expenses HMRC Guide.

How much tax can a dental associate save?

For an associate in England, Wales or Northern Ireland, the income tax effect of claiming a £698 fee can be illustrated as follows:

These examples show Income Tax only.

A reduction in taxable self-employed profits may also reduce Class 4 National Insurance. For 2026/27, Class 4 NIC is charged at 6% on profits between £12,570 and £50,270 and 2% on profits above £50,270. The actual saving therefore depends on the associate’s profit level and wider tax position. Scottish Income Tax rates also differ.

The phrase “the GDC fee saves £314 in tax” should not be presented as a universal result. The correct relief depends on:

• The associate’s marginal tax rate
• Their self-employed profit level
• Their country of residence for Income Tax
• Whether the personal allowance is being withdrawn
• Whether the practice has reimbursed the fee
• Whether the payment has already been included elsewhere

How to claim the GDC fee on Self Assessment

The practical process is:

1. Confirm who bore the cost

Check whether the associate paid the fee personally, the practice reimbursed it or the practice paid it directly.

2. Check the payment date

Use the actual bank or card payment date where the associate uses cash-basis accounting. Where another accounting basis is used, confirm when the cost should be recognised.

3. Record it in the bookkeeping system

Use a consistent professional-fees or professional-subscriptions category.

4. Retain the receipt

The GDC makes payment receipts available through MyGDC. The receipt should be retained with the associate’s digital tax records.

5. Include the expense on the return

Include the allowable cost in the appropriate self-employment expense field generated by the tax software.

6. Check for reimbursement

Where the practice has reimbursed the associate, ensure that the reimbursement and expense are treated consistently.

7. Prevent a duplicate claim

The same £698 must not be deducted twice by the associate or deducted once without recognising an associated practice payment where an income adjustment is required.

For further guidance, read the Dental Associate Self Assessment 2026 guide.

What is the tax treatment for self-employed dental care professionals?

The same general business-expense principles apply to a self-employed dental hygienist, therapist, nurse, technician or other dental care professional.

Where the self-employed DCP personally pays the £108 fee and the registration is required for their work, the fee will normally qualify as a professional expense.

The DCP should:

• Record the payment in their digital accounts
• Retain the GDC receipt
• Record any reimbursement received
• Use the actual payment date when applying cash-basis treatment
• Prevent the same cost being claimed twice

For employed dental care professionals, the position is different. The treatment depends on whether the employee pays the fee, whether the practice reimburses it and whether the professional-subscription exemption applies.

GDC fees and Making Tax Digital for Income Tax

Making Tax Digital for Income Tax became mandatory from 6 April 2026 for qualifying individuals with gross self-employment and property income above the first-phase threshold. These individuals must maintain digital records and send quarterly updates through compatible software.

The GDC fee should be entered into the digital records using the date on which the expense is recognised under the individual’s accounting basis.

Under HMRC’s standard quarterly update periods:

HMRC also permits calendar update periods, but the filing deadlines remain the same.

Example 1: DCP paying by annual Direct Debit

The GDC normally collects the annual DCP Direct Debit around the first working day of July.

A payment taken on 1 July falls within the first standard MTD update period and should be included in the update due by 7 August.

Example 2: DCP paying by card after 5 July

A DCP who pays by card on 20 July falls outside the first standard period.

That transaction is included within the second cumulative update period, due by 7 November.

Example 3: Dentist paying in December

A dentist payment made during December normally falls within the third standard update period, which ends on 5 January. The update is due by 7 February.

Example 4: Quarterly GDC instalments

Where the registrant uses the GDC quarterly Direct Debit option, each instalment should be recorded according to the date on which it is collected.

Do not enter the entire annual charge as one cash payment if the individual actually pays four separate instalments and is using cash-basis accounting.

What happens when a dental practice pays an employee’s GDC fee?

The tax treatment for employees is governed by the professional-subscription rules rather than the normal self-employed business-expense rules.

The General Dental Council appears in HMRC’s List 3 of approved organisations. HMRC specifically allows the fee for entering or retaining a name in the dentist’s register or the corresponding records for dental care professionals.

HMRC states that an employer does not normally need to report or pay tax and National Insurance where it covers an approved List 3 subscription by:

• Paying the professional organisation directly
• Reimbursing the employee after the employee has paid it

This means that direct payment is not the only potentially exempt method. A reimbursement can also qualify when the conditions are met.

Scenario 1: The practice pays the GDC directly

Where an employee must maintain GDC registration for their work and the practice pays the GDC directly, the payment should normally qualify for the approved professional-subscription treatment.

When the exemption applies:

• No taxable benefit normally arises
• No P11D reporting is normally required
• No PAYE tax is normally due
• No employer National Insurance is normally due
• The employee cannot separately claim tax relief for an amount they did not bear

The practice should retain:

• The GDC invoice
• Proof of payment
• The employee’s registration details
• Evidence that registration relates to the employee’s duties
• The practice’s professional-fees policy

Scenario 2: The employee pays and the practice reimburses the exact fee

HMRC also allows the exemption where the employee pays the approved fee and the employer reimburses the actual cost.

The reimbursement should be supported by:

• The GDC receipt
• The employee’s expense claim
• Evidence of the reimbursement
• A check that the amount reimbursed matches the actual fee
• Confirmation that the employee’s role requires or relates to the registration

The employee must not also claim personal tax relief for the reimbursed amount.

Scenario 3: The payment is made through salary sacrifice

Different rules apply where professional fees are provided through a salary sacrifice arrangement.

HMRC says that professional fees provided through salary sacrifice must be reported under the relevant salary-sacrifice rules. Practices should therefore obtain advice before incorporating GDC fees into a salary-exchange arrangement.

Scenario 4: The fee does not qualify for the exemption

Where an employer payment does not qualify, the payroll or benefit treatment depends on how the payment was made.

A non-exempt direct payment and a non-exempt cash reimbursement can produce different National Insurance and payroll-reporting consequences. The practice should not automatically process every professional fee as a P11D benefit without first checking whether List 3 treatment is available.

What if an employed dentist or DCP pays the fee personally?

An employed dental professional who personally pays an eligible GDC fee and receives no reimbursement may be able to claim employment-expense tax relief.

The employee must have paid the fee personally, and the professional registration must be required for or relevant to their employment. An employee cannot claim relief for a fee that the employer has fully reimbursed.

Depending on the employee’s tax affairs, the claim may be made:

• Through HMRC’s online employment-expense service
• Using form P87
• Through the employee’s Self Assessment return

Where the employee already completes Self Assessment, the claim should generally be included in the return.

What happens when the practice pays a self-employed associate’s GDC fee?

A self-employed associate is not covered by employee benefit and P11D rules in the same way as an employee.

The accounting treatment depends on the contractual arrangement and who is legally responsible for the fee.

Where the fee is the associate’s liability

If the practice settles a GDC liability that belongs to the associate as part of their remuneration arrangement, the payment will normally need to be reflected in the associate’s business records.

A common treatment is:

1. Include the amount paid by the practice in the associate’s gross trading income.
2. Record the corresponding GDC fee as a professional expense.
3. Ensure the practice records its payment as part of the cost of engaging the associate.
4. Prevent the same amount being deducted elsewhere.

For example:

Gross associate income adjustment: £698
Professional-fee expense: £698
Net effect on associate trading profit: £0

Although the net taxable effect may be nil, the gross receipt and corresponding expense provide a complete record of what occurred.

Where the practice contractually bears the cost

The treatment can differ where the associate agreement clearly states that the practice, rather than the associate, is responsible for the cost and the fee does not form part of the associate’s remuneration.

The written agreement, payment evidence and invoicing arrangement must therefore be reviewed before deciding how the transaction should be recorded.

The double-deduction risk

An incorrect treatment can produce a duplicate deduction where:

• The practice deducts the cost in its accounts
• The associate also claims the expense
• No corresponding income is recognised by the associate
• The associate’s remuneration statement already deducts or adjusts the same amount

The safest approach is to reconcile the practice ledger, associate payment statement, GDC receipt and associate tax records together.

Should a practice increase associate pay instead?

Some practices choose not to pay an associate’s GDC fee directly. Instead, they factor professional costs into the associate’s remuneration.

Under this arrangement:

1. The additional associate payment forms part of gross trading income.
2. The associate pays the GDC fee personally.
3. The associate claims the fee as an allowable expense where the conditions are satisfied.
4. The practice records the associate payment as part of the cost of engaging the associate.

This can be administratively cleaner because there is no third-party settlement of the associate’s personal liability. However, the associate’s gross income increases, so the commercial terms should be documented clearly.

The impact on dental groups and multi-site practices

The increase becomes more material when a dental group covers the fees of a large workforce.

Consider a group with:

• 10 dentists at £698 each
• 30 DCPs at £108 each

The annual cost is:

At the previous fee levels, the same workforce would have cost:

10 dentists × £621 = £6,210
30 DCPs × £96 = £2,880
Total previous cost = £9,090

The annual increase for this workforce is therefore:

£10,220 minus £9,090 = £1,130

Where the approved professional-subscription treatment applies to employees, the practice can normally avoid tax and National Insurance on the benefit. If the payment were taxable for another reason, the 2026/27 Class 1A NIC rate is 15%.

Dental groups should use separate nominal codes for:

• GDC fees for employed dentists
• GDC fees for employed DCPs
• GDC fees paid for self-employed associates
• Professional subscriptions not covered by List 3
• Staff reimbursements
• Salary-sacrifice professional fees
• Specialist-list fees

This makes it easier to:

• Reconcile the register against the payroll list
• Identify leavers and new starters
• Prevent duplicate payments
• Review exempt and non-exempt fees
• Budget for future increases
• Analyse professional costs by location
• Support payroll and tax reviews

Kudos Accounting’s bookkeeping and payroll service for dental groups can help multi-site practices create consistent nominal codes, reimbursement processes and management reports.

Accounting entries for common GDC fee arrangements

The exact nominal codes depend on the accounting system, but the following examples illustrate the principles.

Employee fee paid directly by the practice

Debit: Employee professional subscriptions
Credit: Bank

Where the List 3 exemption applies, no separate taxable benefit is normally recorded.

Employee reimbursed through an expense claim

Debit: Employee professional subscriptions
Credit: Employee expenses payable or bank

The practice should retain the receipt and approved expense claim.

Self-employed associate’s fee settled by the practice

Practice records:

Debit: Associate costs or associate remuneration
Credit: Bank

Associate records, where the payment forms part of remuneration:

Debit: Professional subscriptions
Credit: Associate trading income or practice payment account

The bookkeeping must reflect the contract and payment statement rather than automatically applying a standard journal.

What if the GDC fee was missed from an earlier return?

A Self Assessment return can normally be amended within 12 months after the statutory filing deadline.

For example, a 2024/25 return with the normal 31 January 2026 filing deadline can usually be amended until 31 January 2027.

If the amendment deadline has passed, the taxpayer may still be able to make an overpayment-relief claim. HMRC says that overpayment relief can normally be claimed within four years after the end of the relevant tax year. The claim must be made in writing and include the required declaration and supporting information.

Do not describe this as a voluntary disclosure unless the issue also involves undeclared income or underpaid tax. A missed allowable expense is usually addressed through an amendment or overpayment-relief claim.

Kudos Accounting’s personal tax service for healthcare professionals can review recent returns for missed professional costs and inconsistent reimbursements.

Common GDC fee accounting mistakes

Claiming the fee without recording a practice reimbursement

If the practice reimbursed the associate, that reimbursement must be considered when calculating the correct business income and expense treatment.

Claiming an employee deduction after full reimbursement

An employee cannot claim personal tax relief for a cost that the employer has fully repaid.

Treating every employer payment as a taxable benefit

The GDC is on HMRC’s List 3. Direct employer payments and reimbursements can be exempt when the conditions are met.

Assuming direct payment is required

HMRC also permits qualifying reimbursement of the employee’s actual fee.

Using the renewal deadline instead of the payment date for MTD

The bookkeeping date is based on the accounting basis and actual transaction, not simply the final GDC deadline.

Placing every July payment in the first MTD period

Under standard periods, the first update ends on 5 July. A payment on 20 July therefore falls in the second cumulative update, not the first.

Claiming the complete fee when paying by instalments

A cash-basis taxpayer should normally record each instalment on the date it is paid.

Using the same accounting treatment for employees and associates

Employees and genuinely self-employed associates are governed by different tax and reporting principles.

Failing to retain GDC receipts

The payment confirmation and receipt should be included in the digital tax records.

Practical action list for dental associates

A self-employed dental associate should:

1. Download the GDC receipt from MyGDC.
2. Confirm the date and method of payment.
3. Check whether the practice paid or reimbursed any part.
4. Record the personally borne cost in the bookkeeping system.
5. Use the correct MTD period where applicable.
6. Include the allowable amount on Self Assessment.
7. Check previous returns for missed fees.
8. Prevent duplicate claims where the practice was involved.

Practical action list for practice owners

A practice owner should:

1. Identify all employed and self-employed registered professionals.
2. Confirm who is contractually responsible for each fee.
3. Decide whether the practice will pay, reimburse or provide no support.
4. Apply the List 3 treatment to qualifying employees.
5. Avoid unnecessary P11D reporting where the exemption applies.
6. Review salary-sacrifice arrangements separately.
7. Document payments for self-employed associates.
8. Reconcile the cost against associate payment statements.
9. Maintain receipts and employee-expense claims.
10. Budget for future fee adjustments.

Practical action list for dental groups

A multi-site dental group should:

1. Maintain a central register of dental professionals.
2. Record registration numbers and renewal dates.
3. Separate employee and associate arrangements.
4. Create dedicated nominal codes.
5. Reconcile GDC payments by site.
6. Review exemptions with payroll.
7. Track instalment arrangements.
8. Forecast annual increases.
9. Identify leavers before paying renewal costs.
10. Review the policy every year.

Final summary

The 2026 GDC fee increase is not simply a registration issue. It affects Self Assessment, employee expenses, payroll controls, Making Tax Digital records and dental-group budgets.

For self-employed dental associates, the personally borne GDC fee will normally qualify as a professional business cost. The £698 fee can reduce taxable profit, but the tax saving depends on the associate’s marginal Income Tax and Class 4 National Insurance position.

For employed dentists and DCPs, the GDC is on HMRC’s List 3. A practice can normally pay the fee directly or reimburse the actual cost without tax and National Insurance when the conditions are satisfied.

For self-employed associates whose fee is paid by the practice, the payment must be recorded in accordance with the contract. Where the practice settles an associate liability as part of remuneration, the amount may need to appear as both gross trading income and a corresponding professional expense.

For Making Tax Digital, the actual transaction date matters. A July DCP payment may fall in the first or second quarterly update depending on when it is paid. A December dentist payment normally falls in the third update.

A specialist review is particularly valuable where a practice:

• Pays fees for both employees and associates
• Reimburses staff through payroll
• Uses salary sacrifice
• Operates multiple sites
• Pays by instalments
• Has previously reported fees on P11Ds
• Cannot reconcile associate payments and deductions

Kudos Accounting can review your GDC fee, Self Assessment, payroll and practice-accounting treatment. Contact the Kudos Accounting team to book a free consultation.

Important information

This article provides general UK tax and accounting information and does not constitute personal tax, employment-law or financial advice. The correct treatment depends on employment status, contractual arrangements, accounting basis, reimbursement arrangements and who ultimately bears the cost.