The demise of the single-handed practitioner?

The latest NASDAL (National Association of Specialist Dental Accountants and Lawyers) Benchmarking Report shows a decrease of almost 12 per cent in profits for single-handed practices in just two years. In 2014, the average net profit per principal in a single-handed practice was £119,732 and, by 2016, this had slumped to £105,914. This compares with a figure of £138,511 average net profit per principal in 2016 for a practice with associates.

Ian Simpson, chartered accountant and a partner in Humphrey and Co, which carries out the statistical exercise, said, “It seems that with increasing costs in compliance and a feeling that they are unable to increase their fees, many single-handed practitioners are taking the hit with a continued fall in their profits. As a ‘compliance culture’ continues unabated, the future will be difficult for those going it alone.”

The report also saw average net profit per principal at NHS practices increase by nearly 4 per cent – from £129,265 in 2015, to £134,102 in 2016. “In previous years we have seen a time lag effect of a year or so from a rise in private practice profitability to that experienced by NHS practices. We suggest that following the rise in private practice profits in 2015, this is again the case here,” explained Ian.