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What Is PPBT™ (Personal Profit Before Tax) for Dental Practice Owners?
PPBT™ — or Personal Profit Before Tax — is a strategic financial metric that calculates how much a dental practice owner can personally take home from their business before paying personal tax, after accounting for future obligations, tax exposure, and operational cash safety.
PPBT™ was created by Shishir Khadka — Chartered Accountant and UK’s leading cash flow expert — to give business owners a clear, safe, and accurate number they can actually use to plan their life.
Learn more: ShishirKhadka.com
Unlike net profit, PPBT™ centres the owner, not the accountant.
And unlike cash in the bank, it reflects what’s safe to draw — not just what’s visible.
Why PPBT™ Matters for Dental Practice Owners
Most dentists don’t know what they can safely take home — without risking tax shocks, overdrafts, or business stress.
Traditional reports fail to answer:
- 💬 “Can I pay myself £6K this month — or am I overreaching?”
- 💬 “Can I afford to take a dividend or buy equipment?”
PPBT™ solves this.
It gives a monthly, forward-looking figure — so you never draw blindly.
Example:
| Business Net Profit | £218,000
| Less: CT Exposure | –£47,500
| Less: Cash Buffer Provision | –£24,000
| Less: Investment Reserve | –£15,000
| ✅ PPBT™ = Take-Home Before Tax | £131,500
What Affects PPBT™?
| Factor | Impact |
| Corporation Tax Liability | Reduces available take-home |
| Deferred Income or NHS Clawback | Lowers safety margin |
| Cash Flow Pressure | Requires holding back more cash |
| Future Reinvestment Plans | Should be deducted before drawing |
| Loan Repayments or Director Loans | Adjust final PPBT™ |
PPBT™ ensures you’re not planning your life based on fake profit or one-time bank spikes.
How DentPulse Tracks PPBT™ Automatically
| Feature | Function |
| Live PPBT™ Dashboard | Real-time view of personal profit before tax |
| Corporation Tax Sync | Deducts current year tax exposure accurately |
| Cash Reserve Overlay | Ensures safety buffer before personal drawings |
| PPP™ Take-Home Engine | Connects PPBT™ to salary/dividends in real time |
| Scenario Planner | Simulates different profit and tax outcomes |
Built into DentPulse.
Created by Shishir Khadka.
DentPulse Tip™
Revenue is ego.
Net profit is opinion.
PPBT™ is truth.
You don’t need more turnover.
You need a number that tells you what’s yours.
Related Glossary Terms
- Profit-to-Pocket™ Model – Converts business profit to personal income
- PPP™ Planner – Where PPBT™ meets dividend and salary strategy
- Personal Tax Exposure – What follows after PPBT™
- CFFP™ – Aligns future inflows/outflows to protect PPBT™
- Cash Reserve Strategy – Required for safe drawing
Glossary Summary Table
| Term | Meaning |
| PPBT™ | Personal Profit Before Tax — safe take-home potential |
| Created by | Shishir Khadka, UK’s leading cash flow expert (shishirkhadka.com) |
| Purpose | Give owners true financial clarity over what they can draw |
| DentPulse Advantage | Tracks PPBT™ live, aligned with tax, buffer, and cash flow forecasts |
ABOUT THE AUTHOR
Shishir Khadka