As we move through 2026, many dental practice owners are already feeling the impact of rising costs, shifting patient behaviour and the upcoming NHS contract reforms. It can feel like a lot to navigate, especially so early in the year, but taking time now to review both your practice and personal finances can make a huge difference to your stability and confidence in the months ahead.
In a recent conversation between Donna Hall, Regional Support Manager at Practice Plan, and Daniel Atkins, Specialist Dental Financial Adviser at Wesleyan Financial Services, the pair explored the major financial trends affecting practices and how owners can position themselves for a stronger year. You can listen to the full podcast by clicking the link here
The financial landscape: What’s pressuring practices in 2026
Dan highlights a number of financial pressures that are affecting practices in every sector, NHS, private and mixed. Rising inflation is still pushing day‑to‑day costs higher; while staffing costs, National Insurance increases and minimum wage uplifts continue to add financial strain. Material prices remain high too.
On top of this, many practices are shifting further into private or mixed dentistry ahead of the NHS contract reforms set for April 2026. And with patient disposable income tightening, some practices are noticing reduced uptake of elective treatments, which can directly affect revenue.
It’s a challenging backdrop but understanding these pressures is the first step to taking control.
With so many moving parts, now is an ideal moment to pause and reassess where your finances stand. Falling private treatment uptake, paired with structural changes from upcoming NHS reform, means practice owners need clarity more than ever. Dan emphasises that annual financial reviews should be a standard part of running a successful practice and many benefit from more frequent check‑ins as dentistry evolves quickly.
A review gives you space to understand your risks, opportunities and priorities for the year ahead.
Three foundations every practice Principal should prioritise
- Start with protection
One of the biggest vulnerabilities practices face is having an associate off sick or injured. Many principals choose not to enforce locum clauses, opting to cover the cost themselves to maintain good relationships but this can raise concerns around whether the associate is truly self‑employed, potentially attracting HMRC scrutiny. Protection is essential to avoid unexpected financial strain.
- Strengthen your financial buffer
With rising staff and operational costs, a healthy reserve becomes vital. A strong buffer can help you manage income dips, NI increases and other unpredictable expenses throughout the year.
- Review your business structure
The structure of your practice isn’t just a legal or financial formality, it’s the framework that supports how your business operates, grows and ultimately succeeds. It can support both profitability and long‑term planning and now is a good time to ensure your current setup still works for you.
Don’t neglect your personal finances
Many dentists focus heavily on the practice and unintentionally neglect their personal financial plans, so it’s important to take time to review key areas:
- Income protection: Many dentists, especially those mainly private, receive little or no sick pay. Understanding the impact of a sudden loss of income is essential.
- Retirement planning: The earlier you start, the more achievable your preferred retirement lifestyle becomes. Pensions remain a highly tax‑efficient planning tool, especially with inflation tightening tax bands.
- Salary and dividend structure (for limited companies): This can significantly affect take‑home pay and long‑term planning.
Your personal financial wellbeing is just as important as the practice’s; both should evolve together.
Investing in the practice vs. saving personally
Reinvesting in the practice is crucial, investments that enhance digital capability, patient experience or operational efficiency tend to increase practice valuation; however, this shouldn’t come at the expense of your own financial security. Finding a healthy balance between business investment and personal wealth planning is key.
If you’re considering adding a clinician or expanding your service offering, Dan suggests starting with protection to avoid gaps in your financial plan. From there, think about where patient demand is heading, areas such as implants, cosmetic dentistry and aligners continue to grow. For practices seeking to invest, competitive lending terms are currently available, especially for those with clear forecasts and strong financial records.
Please note: The value of your investments can go down as well as up and you may get back less money than you invested.
Retirement or exit planning: start early
Even if retirement feels far away, early planning offers tremendous benefits, getting a realistic valuation based on your patient base, private mix and digital readiness, as these factors influence goodwill and Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) multiples. Protection remains important right up to the point of sale, as unexpected health issues can significantly reduce valuation.
Having clarity around your retirement income needs and maximising pension contributions can give you a stronger foundation for later life.
Your first step toward financial confidence
Ready to take the first step? If you’re a Practice Plan client, the great news is that your Regional Support Manager can introduce you to your local Specialist Financial Adviser, whom they already work closely with.
If you are new to Practice Plan and found this blog useful, you can out more about Wesleyan Financial Services by visiting their website by clicking here…
Charges may apply.
Practice Plan Limited (Registered in England and Wales No. 03089948) is a part of the Wesleyan Group. Registered
office: Cambrian Works, Gobowen Road, Oswestry, Shropshire, SY11 1HS Telephone number: 01691 684120.
Website: www.practiceplan.co.uk. Practice Plan Limited is an introducer appointed representative of Wesleyan
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