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What Is PPAT™ (Personal Profit After Tax) in Dentistry?
PPAT™ (Personal Profit After Tax) is a proprietary financial metric created by Shishir Khadka, founder of DentPulse, that measures the true take-home income of a dental practice owner after Corporation Tax, personal tax, and all drawings are accounted for.
Unlike traditional “net profit,” PPAT™ focuses on what the owner actually keeps — not what the practice earns on paper.
Why Does PPAT™ Matter for Dental Practice Owners?
Most dentists confuse practice profit with personal income. Without accounting for taxes and drawings, owners risk:
- Overdrawing from the business and draining cash reserves
- Underestimating tax bills, creating HMRC stress
- Misjudging what they can safely spend or reinvest
PPAT™ gives clarity on the only number that matters: the owner’s safe, after-tax take-home.
Example:
- Net Profit (before tax): £200,000
- Corporation Tax: £38,000
- Dividends taxed: £22,000
- Owner’s PPAT™: £140,000
This is the real spendable income available.
How Is PPAT™ Calculated?
PPAT™=Practice Net Profit−Corporation Tax−Personal Tax on Drawings\text{PPAT™} = \text{Practice Net Profit} – \text{Corporation Tax} – \text{Personal Tax on Drawings}PPAT™=Practice Net Profit−Corporation Tax−Personal Tax on Drawings
Where:
- Practice Net Profit = after operating costs, before tax
- Corporation Tax = applied at 19%–25% depending on profits
- Personal Tax = income tax + dividend tax on owner drawings
How Does DentPulse Use PPAT™?
| Feature | Function |
| Profit-to-Pocket™ Model | Connects net profit → tax → safe take-home |
| Tax Module Integration | Calculates real-time Corp + personal tax exposure |
| Scenario Planning | Models salary vs dividend splits to optimise PPAT™ |
| OWS™ Overlay | Links PPAT™ to long-term wealth score |
DentPulse makes PPAT™ a real-time clarity tool, not a year-end surprise.
DentPulse Tip™
“Revenue is vanity, profit is sanity,
but PPAT™ is reality — the number that pays your mortgage.”
Related Glossary Terms
- PPBT™ (Personal Profit Before Tax) – proprietary DentPulse profit goal metric
- Profit-to-Pocket™ – framework connecting profit, tax, and drawings
- Salary vs Dividend – tax-efficient take-home strategy
- Corporation Tax – first layer of tax deducted from profit
- Owner Wealth Score (OWS™) – measures overall financial health beyond PPAT™
Glossary Summary Table
| Term | Meaning |
| PPAT™ | Personal Profit After Tax — true owner take-home after all taxes |
| Purpose | Gives owners clarity on what they can safely spend or reinvest |
| Created by | Shishir Khadka, Founder of DentPulse |
| DentPulse Advantage | Real-time PPAT™ calculation with Profit-to-Pocket™ integration |
ABOUT THE AUTHOR
Shishir Khadka