Fees, payroll & splits
Room hire vs percentage split for UK clinics
Associates and clinic owners often argue about a headline percentage when the real choice is structural: does the practitioner pay for space (room hire) or share each fee (percentage split)? This guide compares both models with numbers you can re-run before anyone rewrites a contract.
Important Illustrative planning content for UK private clinic administration only. Figures and bands are not audited national statistics and do not replace advice from your accountant, solicitor, or clinical leads.
Key takeaways
- Percentage splits scale with fee and volume; room hire is steadier for the clinic when diaries are soft.
- Compare net to each party after cards, leads, and who owns the patient list.
- Hybrids (lower % plus room contribution) are common—model them explicitly.
- Fee maths does not decide employment status—get advice on contracts and tax.
Two commercial logics
Percentage split: the clinic and practitioner share the patient fee. The clinic’s income rises when fees or volume rise, and falls when the diary is quiet—unless minimums exist.
Room hire: the practitioner pays for access to space (and often facilities) and keeps more of the fee. The clinic’s income is tied to occupied rooms or contracted sessions more than to the patient price list—though empty rooms still hurt.
When percentage splits suit both parties
Percentage models fit clinics that supply brand, reception, marketing leads, and software as a bundled platform. The associate is paying for access to a fed diary, not only four walls. They also suit specialties with variable fees if both sides want to share upside.
Risk: quiet months cut both parties’ cash. A high associate percentage with the clinic still funding all leads can strand the site below break-even contribution. Run session-margin logic on the clinic retention slice—not only on the patient fee.
When room hire is clearer
Room hire suits practitioners with their own caseload who mainly need a clinical space, or clinics that want predictable facility income. It can be hourly, half-day, or monthly. Predictability helps the clinic’s rent cover; utilisation risk shifts toward the practitioner.
Risk: if the clinic still provides most new patients, a pure room rate may underpay the clinic for marketing and reception. If the practitioner brings every patient, a heavy percentage may overpay the clinic relative to value provided. Honesty about lead source belongs in the term sheet.
Worked comparison (same fee and volume)
Assume £65 average fee, 60 sessions per month, card fees ignored for simplicity. Under a 60/40 associate/clinic split, associate gross share = £2,340; clinic = £1,560.
Under room hire of £18 per session, practitioner pays £1,080 and keeps £65 × 60 − £1,080 = £2,820; clinic receives £1,080. Here room hire pays the associate more and the clinic less than 40% retention—at this volume. If volume falls to 35 sessions, 40% retention yields clinic £910 while room hire at £18 still yields £630 only if sessions run; a fixed monthly room contract would change that again. Re-run with your real fees using the room rental and split calculators.
Negotiation checklist beyond the headline number
Who pays card fees, laundry, consumables, and SMS? Who owns patient data on exit? What notice period applies? Are DNA fees shared? Is there a minimum weekly room commitment? Are packages split on cash received or session delivery?
Write the answers down. Two people can agree “60%” and still mean different nets. Use the practitioner take-home calculator only as a sketch after clinic retention—tax still sits outside.
- Lead source: clinic-fed vs self-fed caseload.
- Space exclusivity and peak-hour access.
- Holiday cover and locum rules.
- Insurance, complaints handling, and brand use.
Compliance boundary
Choosing room hire or percentage language does not by itself make someone employed or self-employed. Working practices, control, and contract terms matter. This guide is commercial explanation for people already operating in private practice—not legal, tax, or HR advice. Have an accountant or solicitor review status and agreements before you switch models.
Illustrative model fit
Directional fit notes for discussion—not recommended legal structures.
Always remodel with your fees, volumes, and overheads. Borrowed “standard splits” from social media are not due diligence.
Common questions
- Is room hire better than a percentage split?
- Neither is universally better. It depends on who supplies patients, who pays overheads, and how variable demand is. Compare nets under realistic quiet and busy months.
- Can we combine room hire and a percentage?
- Yes—hybrids are common. Model both charges together so you do not double-count the clinic’s take.
- Does a percentage split mean the clinic employs the associate?
- Not automatically. Status depends on wider facts and law. Use qualified advice; do not treat the calculator as a status test.
- Which calculator should I use first?
- Use the associate split calculator for percentage deals and the room rental calculator for facility-style deals, then compare nets side by side for the same session count.
Related calculators
Use these free tools alongside this guide—inputs stay in your browser.