NASDAL (National Association of Specialist Dental Accountants and Lawyers) has published its annual Benchmarking Report for the financial period, 2023-24. These eagerly awaited statistics have shown:
- Average Associate remuneration is up for the third year in a row from £80,554 to £90,161 – an 11.9% increase
- NHS Practices saw a small increase in average net profit per principal to £165,871 from £157,907 – a 5% increase
- A further reduction in private practice profit – a drop from £175,800 in 2023 to £161,910 – but still returning to expected levels
- A reduction in mixed practice profits – from £183,511 in 2023 to £158,559
- Increases in costs – 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
- Practices with Associates still show much higher average net profit per Principal – £165,318 versus £141,128 single-handed in this year’s 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.
The rise in the NHS practice profits was perhaps an initial surprise but has been driven by much less clawback in 2023-24 than the previous year. A reduction in profitability for private and mixed practices was expected – 2022 was higher due to the impact of pandemic and the last couple of years have seen less disposable income in the economy.”
Heidi Marshall, of Dodd & Co, Specialist Dental Accountants and Chair of NASDAL, said, “This data is tremendously useful to NASDAL clients and a big thank you to Ian and his team and all the NASDAL members for pooling this useful data. 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 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 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 2024 tax returns and accounts with year ends up to 5 April 2024.
Johnny Minford, Commercial and Development Director of DJH and NASDAL Media Officer, 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.”
