Samantha Nicholson, Johnston Carmichael Accountants, Roy Hogg, Chair of NASDAL Scotland and Johnston Carmichael Accountants, Michael Royden, Thorntons Law

NASDAL Scotland Annual Benchmarking Statistics – margins in all practices under pressure

Today has seen NASDAL Scotland (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:

• Gross Profit margins in all practices are under pressure – almost 70p in the £ is spent on costs 
• Private practices seeing the biggest increase in net profit per principal – up from £206,276 to £253,200
• Associates saw average profits up from £80,558 in 2023-24 to £93,098 last year. This sees an increase of around 43% in 4 years 
• NHS Practices saw a drop in terms of net profit per principal – to £176,556 in 2024-25 from  £180,018 in 2023-24.  
• Mixed practices saw a significant increase to £217,624 net profit per principal – from £199,471 in 2023-24. 

Roy Hogg, of Johnston Carmichael, Specialist Dental Accountant and Chair of NASDAL Scotland said, “Costs are definitely on the rise and laboratory costs have continued to grow in the latest results. This sees total expenses of all types at 68.1% in 2024-25. A percentage we will continue to monitor. It is good to see that profits are up for private and mixed practices although they did fall back slightly for NHS practices. However, in regard to private practices, this comes off the back of a big drop in average net profit per principal in 2023-24. 

“In regard to the NHS figures, fees for NHS practices have increased by only around £40k year on year, margins are being squeezed and this may explain the slight shortfall compared to 2023-24. This also reflects that NHS practices are paying 21.5% on associate fees, compared to 15.2% in private practices – potentially reflecting a more principal-led model in private practices.

“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.”

The annual Benchmarking Survey statistics are gathered from the accountant members of NASDAL across Scotland and 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.