You will have recently received your superannuation forms SD86C for the year 2010-11. Many dentists do not particularly look at these certificates, on which the tax relief for your superannuation deductions is given.

You should.

Dentists and their accountants will remember the rush to get the Annual Reconciliation Reports submitted before the end of May. The ARR is intended to set out the actual achievement of UDA’s or UOA’s last year, and who in the practice did them. The related superannuation is computed, and it is expected that the formal certificate SD86C then follows to be used as part of the dentist’s tax submission.

Unfortunately the SD86C’s issued have largely ignored the ARR figures. This means that they are wrong.

We have queried with some PCT’s why this is so, and it appears that it is an issue of the internal deadlines, holidays, backlogs, miscommunications, and so on. They say they are intending to process the ARR’s, and produce the ‘proper’ SD86C by the end of September.

So the early issue of the SD86C’s has been worse than pointless – it has been positively dangerous. Any tax submissions made or pension decisions taken based on this ostensibly authoritative document now in your possession may be wrong, and for some high earning clinicians, very, very wrong. This could have a knock on effect on the tax payments currently being made, as the decision-making process may well be based on incorrect data.

At the very least you will need a “repair” to your tax submission to be made by your accountant with the correct information, when it is eventually released.

So – – – – check your SD86C’s before relying on it for any purpose. You have two months to inform the BSA that you do not consider it to be correct. If in doubt consult your accountant. Specialist advisers will be aware of what is going on — others will not. Your SD86C needs to be correct – either for now or for when you come to retire.

Menu