NHS Digital today released details of the earnings and expenses of General Dental Services (GDS) dentists in Northern Ireland in 2019/20.
This is the thirteenth set of earnings and expenses data that have been produced for Northern Ireland.
Previously, separate country reports were produced; the Earnings and Expenses report has been published as a UK report for each of the past seven years. This is the fourth year that the entire series of the Dental Earnings and Expenses Estimates has been published in one instalment. In previous years, this report was issued in two instalments, entitled Initial Analysis and Additional Analysis. Below we present key points for Northern Ireland only.
It is important to note that values are not comparable between countries due to differing contractual arrangements and the use of different methods to determine dental type in each country.
Note, the source for all figures is NHS Digital.
Key Points on GDS Earnings and Expenses Estimates in Northern Ireland 2019/20
The report presents key findings in terms of average taxable income, average expenses and average gross earnings for Principal and Associate dentists.
It is not meaningful to discuss the average earnings of an average dentist, as there is great variation in the different financial arrangements. However, the key findings among self-employed GDS Northern Ireland dentists in 2019/20 are given below. Where statistically permissible, comparisons for the main findings have been made with the 2018/19 results; however, comparisons should be made with caution. Factors which can affect comparisons include: changes in the dental workforce, changes in type and volume of activity per dentist, changes to allowances, and VAT changes. It is also necessary to consider the absolute changes between years, as well as changes in percentage terms.
- Average taxable income (gross earnings minus expenses, before income tax) for Principal dentists was £99,200 compared to £104,400 in 2018/19 (a decrease of 5.0%); and for Associate dentists was £57,200 compared to £58,700 in 2018/19 (a decrease of 2.4%)[1].
- Compared to 2018/19 figures, there was a decrease of 4.2% in the average taxable income from Health Service and private dentistry for all self-employed GDS dentists (Principals and Associates) in 2019/20, from £68,000 to £65,100[1].
- The decrease in gross earnings (-6.4%) was less than the decrease in total expenses (-8.2%), which is not in line with the general trend since 2008/09 (gross earnings to decrease more, or increase less than total expenses).
- Average expenses[2] (business expenses allowable for tax purposes) for Principal dentists were £213,700 compared to £229,700 in 2018/19 (a decrease of 7.0%);
for Associate dentists they were £39,000 compared to £39,400 in 2018/19 (a decrease of 1.3%)[1].
- Average gross earnings (self-employment income before deduction of expenses) for Principal dentists were £312,900 compared to £334,200 in 2018/19 (a decrease of 6.4%); and for Associate dentists were £96,200 compared to £98,100 in 2018/19 (a decrease of 1.9%)[1].
- The Expenses to Earnings Ratio (EER) for Principal dentists was 68.3% compared to 68.8% in 2018/19 (a change of -0.5 percentage points); for Associate dentists, the EER was 40.5% compared to 40.2% in 2018/19 (a change of +0.3 percentage points). The EER for all dentists was 52.4%, compared to 53.5% in 2018/19 (a change of -1.1 percentage points). The EER is the proportion of gross earnings taken up by expenses.
- For all self-employed dentists (Principals and Associates), the lowest combined taxable income (from Health Service and Private Dentistry), of £51,500, was reported for those dentists whose Health Service earnings accounted for at least 75% of their total gross earnings; those whose Health Service earnings accounted for 25% or less, and between 25% and 75% of their total gross earnings had taxable incomes of £88,600 and £96,700 respectively.
- For both associates and principals, those whose Health service earnings accounted for at least 75% of their total gross earnings also had the lowest taxable income within their dental type.
- As in previous years, regardless of dental type classification, male dentists had higher average gross earnings, total expenses, and taxable income than their female counterparts. For all male self-employed GDS dentists, average taxable income was £82,000, compared to £52,300 for all female self-employed GDS dentists.
- For Principal dentists, Associate dentists, and when all dentists are considered together, those aged over 45 had the highest gross earnings, total expenses and taxable income.
- Consistent with trends shown in previous years, dentists aged under 35 years had the lowest gross earnings, expenses and taxable incomes.
- For associate dentists, those under 35 years of age earned the lowest taxable income from Health service and Private dentistry in 2019/20 (£48,400, compared to £59,000 and £67,600 for those aged 35 to 44 and 45 and over respectively).
- For principal dentists, those under 35 years of age earned the lowest taxable income from Health service and Private dentistry in 2019/20 (£71,500, compared to £98,300 and £104,200 for those aged 35 to 44 and 45 and over respectively).
- For all self-employed dentists together, as weekly working hours increase, so do gross earnings, total expenses and taxable income.
- For all self-employed GDS dentists in 2019/20, male dentists who worked over 45 hours per week had the highest average taxable income at £140,500, compared to £92,500 for all male survey respondents.
- For all self-employed GDS dentists in 2019/20, those who spent the least amount (0-25%) of their dental time on Health Service dentistry had the highest gross earnings and total expenses. Those who spent 75% or more of their dental time on Health Service dentistry had the highest taxable income.
- For all self-employed GDS dentists in 2019/20, consistent with the results from 2018/19, the four largest expense categories were Other (55.5%), Employee (23.5%), Office and General Business (9.9%) and (Premises 7.3%).
Notes to editors:
1. Dental Earnings and Expenses Estimates 2019/20 is published on the NHS Digital internet site only.
2. Note, NHS Digital must be quoted as the source of all figures.
3. The Earnings and Expenses Ratio (EER) is a measure of how much of an individual’s gross earnings was consumed by business expenses.
4. General dental practitioners are independent contractors who have undertaken to provide dental treatment and appliances on behalf of the Health and Social Care Board. Currently in Northern Ireland, there is only one type of contract under which these dentists can operate, that is, General Dental Services (GDS). Under GDS they have to provide a full range of mandatory dental services. A self-employed Principal dentist is also the practice owner/partner; an Associate dentist is a self-employed dentist that enters into a contractual arrangement with a Principal that is neither partnership nor employment.
5. NHS Digital is England’s authoritative, independent source of health and social care information. Its role is to collect data, analyse it and convert it into useful information which helps providers improve their services and supports academics, researchers, regulators and policymakers in their work.
6. The reports were produced by NHS Digital, in consultation with a working group comprised of representatives from all the Health Departments, all devolved Governments, business support organisations for each country, the British Dental Association, the Doctors and Dentists’ Review Body, Her Majesty’s Revenue and Customs and specialists in dental accounting and law.
7. The data sources used in report production were: (i) raw data containing activity and demographic information on dentists in Northern Ireland provided by the Business Services Organisation were used to derive the dental population; and (ii) self-assessment tax data held and analysed by HM Revenue and Customs (HMRC) statisticians.
8. For media enquiries please contact the DoH Press Office by email at pressoffice@health-ni.gov.uk
9. Follow us on twitter @healthdpt.
10. The Executive Information Service operates an out of hours service for Media Enquiries Only between 1800hrs and 0800hrs Monday to Friday and at weekends and public holidays. The Duty Press Officer can be contacted on 028 9037 8110.
[1] Within the report, percentage changes presented are calculated on unrounded data, while all earning and expenses data are rounded by NHS Digital to the nearest £100
[2] Note that a designated dentist in each practice is paid a practice allowance under GDS to help address the increasing running costs of health service dental practices in relation to the provision of high quality premises, health and safety, staffing support and information collection and provision. For technical reasons, it has not been possible to off-set this allowance against expenses and the expense element will therefore be inflated.