Dental practice profits rebounded across private and mixed practices in 2025, with NHS profits also rising, according to the latest benchmarking report from the National Association of Specialist Dental Accountants and Lawyers (NASDAL).
The annual report, compiled by Humphrey and Co from data pooled by NASDAL accountant members, draws on figures from 650 principals and limited companies and 600 associates, representing a substantial cross-section of UK dental practice finances.
Private and mixed dental practices profits bounce back
Private practice saw the sharpest recovery, with average net profit per principal rising to £198,291 in 2025 from £161,910 in 2024.
Mixed practice profits also rose, reaching £193,532 per principal in 2025, up from £183,511 in 2023. NHS practices recorded average net profit per principal of £196,559, up from £165,871 in 2024, with signs of stabilisation after a period of contraction.
UDA rates have increased since 2022 and the report suggests the uplift is being passed on to associates, with associate income and profit holding steady following several years of growth.
‘This year’s figures see profits for private and mixed practices bounce back after big falls in the 2024 figures,’ said Ian Simpson, chartered accountant and partner at Humphrey and Co. ‘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.’
Costs and pressures on the horizon
Dental practice profits in 2025 were also shaped by rising employment costs, with wages and direct costs increasing by 2.6%, from 45.8% of fee income in 2024 to 47% in 2025. Mixed practices recorded slightly lower profits than NHS and private counterparts, which NASDAL attributed to a more associate-led model, reflected in higher wage and direct cost percentages.
Simpson flagged that the figures pre-date the rise in employers’ national insurance contributions introduced in April 2025. ‘It will be interesting to see what effect they have on the figures for next year,’ he said.
On the NHS side, Simpson noted that the UDA rate uplift – delivered via a reduction in UDA targets rather than a direct rate increase – had improved remuneration for NHS dentists but reduced overall NHS availability. ‘I surmise that more and more people are seeking out private dentistry,’ he added.
Heidi Marshall, of Dodd & Co Specialist Dental Accountants and chair of NASDAL, said the rise in NHS profits may partly reflect reduced clawback alongside higher UDA rates, and pointed to a notable fall in laboratory and materials costs, particularly in NHS practices. ‘In a more challenging economic environment, NHS practices look particularly attractive,’ she said.
The NASDAL benchmarking survey is published annually and reflects dental practice finances for the most recent tax year. The figures are based on 2025 tax returns and accounts with year ends up to 5 April 2025. NASDAL’s designation of practices as NHS or private reflects that more than 80% of business income comes from that source.
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