Average associate remuneration is up for the third year in a row to £90,161 – marking an 11.9% increase, according to new statistics.
Today. the National Association of Specialist Dental Accountants and Lawyers (NADSAL) published their annual benchmarking report for the financial period of 2023-24.
Findings include:
- Average associate remuneration is up for the third year in a row from £80,554 to £90,161, markig 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.
Associates ‘have more clout’ in negotiations
Ian Simpson, chartered accountant and a partner in Humphrey and Co, which conducts the statistical exercise, said: ‘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.’
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.
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