Last reviewed: 14 August 2026
Quick summary
- Keep every practice statement because it explains the difference between gross clinical fees and the cash paid to you.
- Reconcile lab bills, licence or practice fees, UDA-related adjustments, pension information, retentions and corrections as distinct lines.
- A retained amount is not automatically a tax deduction or expense. Save the agreement and track its release, set-off or final adjustment.
Topic hub: GP and dentist accounting guides
Direct answer
Your net practice payment is not a complete record of your associate income. It is the end of a calculation. A typical statement may start with NHS and private activity, then apply your agreed percentage or licence fee, laboratory work, prior-period corrections, pension-related information, a retention and perhaps an advance or recovery. Without the statement, neither you nor an accountant can reliably explain the bank receipt.
Build a one-page monthly bridge: gross NHS amount, gross private amount, other clinical income, each practice deduction, each adjustment, retained balance movement, amount paid and date paid. It is deliberately more detailed than a generic income-and-expense list because associate dentistry is paid through a practice calculation rather than a single customer invoice.
How to read a practice statement from top to bottom
First identify the period of work and the payment date. They are often different. A June payment might contain May activity, a correction to an earlier month and a deduction for a laboratory bill that was not on the last statement. Put both dates in your own tracker so a delayed payment does not disappear into the wrong month.
Then separate the clinical-income lanes. Your practice may show NHS activity and private fees differently; some statements also show hygiene referrals, plan income, sundry fees or an adjustment to a previous estimate. The labels and your associate agreement matter. Do not replace them all with one number called "dentist income" if you need to query a change later.
Next list deductions exactly as the statement labels them: practice or licence fee, lab bill, implant component, consumables if charged, indemnity if collected through the practice, pension deductions or adjustments, and any recovery. The BDA notes that associate income calculations can include gross income, laboratory charges, practice charges and superannuation-related items. This does not decide the tax treatment of every line, but it explains why the source record matters.
Finally reconcile to net pay. If the difference is a retention, show it as its own balance, not as an unexplained expense. If it is a correction, keep the original and corrected statement together. The aim is a traceable question: "What changed, for which period, and where was it settled?"
Four statements that need different notes
1. Lab fee appears after the patient work
You complete a private case in one month and a laboratory charge reaches the practice in the next. Keep the patient or case reference where appropriate, the lab invoice or statement line and both practice statements. Your tracker can show when the income was credited and when the related charge was taken, without pretending they happened on the same banking date.
2. UDA or activity adjustment arrives later
An NHS-related statement may contain a later adjustment to delivery, a correction or a recovery. Do not hide it in an "other" column. Record the period it refers to, the statement date, the reason given by the practice and the resulting cash effect. The practice should be able to explain the calculation; the accountant can then see whether it is income timing, an expense, a debt recovery or something that needs further evidence.
3. Money is held back when you leave or reduce sessions
Some associate arrangements contain a retention or holdback. The contract and statement matter more than the label. Record the opening retained balance, each movement, the condition for release and the final payment or deduction. Do not assume it has vanished because it was not in your bank account, and do not describe it as a routine expense without advice on the particular agreement.
4. Mixed practice and personal costs
Professional indemnity, GDC fees, courses, travel and equipment can be paid personally, through the practice or through a mixture of both. Mark the payer as well as the category. This prevents claiming something twice or missing a cost because it was netted from the practice payment.
Your dental associate monthly evidence pack
- Practice statement for every payment period, including revisions.
- Associate agreement and any schedule covering fees, labs, retentions and notice.
- NHS and private activity reports supplied by the practice.
- Laboratory invoices, case references and credit notes where you are charged.
- Bank payments matched to statement net figures.
- A retained-balance ledger: opening amount, additions, releases, set-offs and closing amount.
- NHS pension documentation and the practice information needed for annual reconciliation where relevant.
- Personally paid indemnity, GDC, courses, equipment, mileage and software records.
Make a folder by practice and tax year. Locums or associates working at more than one practice should not merge all statements into one unnamed PDF pile: each practice has its own payment rhythm, agreement and deduction wording.
What competitors often leave out
Dental expense articles are useful for a list of possible costs, while practice software pages are useful for a practice owner. Neither solves the associate's recurring problem: a short statement says one number is "adjusted" or "retained" and the cash does not match the clinical work remembered that month. The better record is a statement bridge that lets you query the practice early and gives your accountant source evidence instead of a guessed annual total.
It also makes a quote comparison more honest. An accountant who understands associate statements should be able to explain how they will collect practice statements, lab evidence, pension data and retained-money movements, not merely offer a price for a tax return.
Questions to ask an accountant
- Which statement totals do you want as gross income before practice deductions?
- How should I track a retention while I am still at the practice and after I leave?
- What evidence do you need for lab fees that cross statement periods?
- How should I separate NHS, private and other practice-paid income?
- What records should I keep for pension reconciliation and late adjustments?
Related guides
Key takeaway
Keep the gross-to-net explanation, not just the net pay. A monthly practice-statement bridge makes lab fees, corrections and retained money visible while there is still time to ask the practice about them.
Sources checked on 14 August 2026
FAQs
Can I use only my bank statements for my tax return?
Bank statements show cash, but practice statements explain the gross income and deductions behind it. Keep both.
What if I do not understand an adjustment line?
Ask the practice for the calculation and keep its written explanation with the statement. A vague label is not enough for a useful reconciliation.
Does every practice use the same statement format?
No. That is why your own consistent bridge, using the statement's actual labels, is more useful than relying on a generic template.