UK dental practice profits recover across all sectors in 2025
UK practice profit benchmarks for 2025: private up 22%, NHS up 19%, mixed up 5%. Budget accordingly.
Private and NHS practices see profit rebound
Dental practice profits rose across all sectors in 2025, according to the latest NASDAL benchmarking report compiled from data on 650 principals and limited companies and 600 associates. Private practice saw the sharpest recovery, with average net profit per principal reaching £198,291 in 2025, up from £161,910 in 2024. Mixed practice profits also climbed to £193,532 per principal in 2025, compared with £183,511 in 2023. NHS practices recorded average net profit per principal of £196,559, up from £165,871 in 2024, suggesting stabilisation after a period of contraction.
Rising costs and future pressures
Employment costs drove changes across all practice types. Wages and direct costs increased to 47% of fee income in 2025, up from 45.8% in 2024, a rise of 2.6 percentage points. Mixed practices recorded slightly lower profits than NHS and private counterparts, attributed to a more associate-led model with higher wage and direct cost percentages. UDA rate increases since 2022 have been passed on to associates, with their income and profit holding steady after years of growth.
The report data predates the rise in employers' national insurance contributions introduced in April 2025, which may impact future figures. On the NHS side, the UDA rate uplift was delivered through reduced UDA targets rather than a direct rate increase, improving remuneration for NHS dentists but reducing overall NHS availability. A notable fall in laboratory and materials costs, particularly in NHS practices, contributed to improved profitability.
Frequently asked questions
What were UK private practice profits in 2025?
Average net profit per principal in private practice reached £198,291 in 2025, up from £161,910 in 2024, representing a recovery of approximately 22% year-on-year.
How much did NHS dentist profits increase in 2025?
NHS practices recorded average net profit per principal of £196,559 in 2025, up from £165,871 in 2024, showing signs of stabilisation after a period of contraction.
How have employment costs affected dental practice finances?
Wages and direct costs rose to 47% of fee income in 2025, up from 45.8% in 2024. This 2.6 percentage point increase reflects rising employment pressures across all practice types.
What impact will April 2025 national insurance changes have on practices?
The NASDAL report predates the rise in employers' national insurance contributions introduced in April 2025, so the full impact on practice finances is not yet reflected in these figures.
Why are mixed practices less profitable than NHS and private practices?
Mixed practices are typically more associate-led, resulting in higher wage and direct cost percentages relative to fee income, which reduces overall profit margins compared to other practice models.
