Today has seen NASDAL (National Association of Specialist Dental Accountants and Lawyers) publish their annual Benchmarking Report for the financial period, 2024-25. These eagerly awaited statistics have shown:
- Dentists are being better remunerated for providing NHS care. UDA rates have increased since 2022 and there have been few larger contracts
- Associate income and profit stayed steady after some years of growth. It also appears that the increase in UDA values is being passed on to Associates by practices
- NHS Practices saw an increase in average net profit per principal to £196,559 from £165,871 in 2024
- After a big drop in 2024, private practice profit returned to expected levels – £198, 291 average net profit per principal from £161, 910 in 2024. This was a 12.8% increase on the 2023 figure of £175,800 average net profit per principal
- Mixed practice profits up – from £183,511 in 2023 to £193,532 in 2025. Mixed practices profits are slightly less than NHS and private – possibly due to the fact they tend to be more associate-led, evidenced by higher wages and direct cost percentages
- A 2.6% increase in wages and direct costs from 45.8% in 2024 to 47% in 2025
- Practices meeting the criteria of an NHS practice (more than 80% NHS) appear to have stabilised – there had been a reduction in recent years
Ian Simpson, Chartered Accountant and a partner in Humphrey and Co, which conducts the statistical exercise commented, “This year’s figures see profits for private and mixed practices bounce back after big falls in the 2024 figures. (Even NHS profits in 2024 only saw a small increase). Profits across all practice types have been similar. The data also suggests that the typical practice is getting ‘bigger’ and the average number of principals per practice is reducing; hence profit per principal is increasing.
The UDA rate uplift via UDA off-set (i.e. reduction in UDA target) has seen better remunerated dentists but a reduction in NHS availability and I surmise that more and more people are seeking out private dentistry.
It is perhaps not surprising to see an increase in labour costs (although strangely not a substantial increase in staff costs as a % of fee income) – the figures here are before the substantial Employers’ NIC rises in April 2025 so it will be interesting to see what effect they have on the figures for next year.”
Heidi Marshall, of Dodd & Co, Specialist Dental Accountants and Chair of NASDAL said, “This data is tremendously useful to all NASDAL clients and a big thank you to Ian and the team at Humphrey and Co as well as all NASDAL members for pooling this useful data. It is interesting to see the rise in NHS profits – could this be related to less clawback than previously as well as the increased UDA rates? The figures also saw a sizeable reduction in laboratory and materials costs, especially for NHS practices. It could also be that in a more challenging economic environment that once again NHS practices look particularly attractive.”
The annual Benchmarking Survey statistics are gathered from the accountant members of NASDAL across the UK who together act for more than a quarter of self-employed dentists. The statistics provide average ‘state-of-the-nation’ figures so NASDAL accountants can benchmark their clients’ earnings and expenditure and help them run their practices more profitably. The basis of the survey figures is 2025 tax returns and accounts with year ends up to 5 April 2025.
Heidi added, “The NASDAL annual profit and loss benchmarking report is a unique and valuable tool which enables NASDAL accountant members to compare their practice owning clients with industry norms. It means that we help our clients really understand what is happening in their dental business.”