Accountants Paint a Positive Picture for Associates
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- Published: Monday, 24 March 2025 09:42
- Written by Peter Ingle
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After a steady stream of stories from across the profession about practices struggling to remain viable, a new survey provides a generally more positive snapshot, at least for associates.
The annual National Association of Specialist Dental Accountants and Lawyers (NASDAL) benchmarking statistics remain one of the key vital signs of the state of health of UK dental practices. With a sample size of 650 principals and limited companies, and 600 associates, the 2023-24 report offers some key take-aways.
There is good news for associates with remuneration up for the third successive year, the average figure having increased by almost 12%, from £80,554 to £90,161.
Across practices, changes were varied depending upon the NHS/private mix. NHS Practices saw a 5% increase in average net profit per principal to £165,871 from £157,907. Private practice profits did not fare as well, with a drop from £175,800 in 2023 to £161,910, however this represented something of a return to expected levels. Mixed practice profits faced a greater drop, from £183,511 in 2023 to £158,559.
The rise in the NHS practice profits was perhaps an initial surprise, but was driven by much less clawback in 2023-24 than the previous year. The reduction in profitability for private and mixed practices was expected because 2022 numbers were higher due to the impact of the pandemic, and the last couple of years have seen less disposable income in the economy.
The ever increasing costs faced by practices meant that expense ratios as a percentage of fees were up from 69.5% in 2023 to 73.3% in 2024. A significant factor in this were higher staff costs.
Despite the impressive performance of associate income this year, practices with them showed a higher average net profit per Principal, of £165,318 versus £141,128 single-handed, in the latest figures.
Ian Simpson, Chartered Accountant and a partner in Humphrey and Co, which conducts the statistical exercise, commented: “We did expect to see Associate remuneration continue its upward curve and 11.9% is quite an increase. Many Associates are working more hours that are on offer to them and certainly have more clout in negotiating than they did several years ago. Associates who are at Private or Mixed practices see a greater profitability than those at NHS practices.
Heidi Marshall, of Dodd & Co, Specialist Dental Accountants and Chair of NASDAL, provided a telling observation: “An interesting point to consider is that NASDAL has collated this data for more than 15 years and we are seeing fewer and fewer practices now being considered NHS (more than 80% of practice income through the NHS). It has dropped below 20% of the sample size this year for the first time. Is this part of a wider trend or perhaps just more practices are becoming more mixed to guard against all economic eventualities?”
The basis of the survey figures is 2024 tax returns and accounts with year ends up to 5 April 2024. The data is sourced directly from dentists working privately and in the NHS. It should be pointed out that the figures published by the Public Health England’s Information Centre later in the year, will reflect the income of NHS dentists only.
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