Veterinary Practices: Costs, Margins and Benchmarks

The ONS counted 3,605 veterinary businesses registered for VAT or PAYE in 2024, with turnover of £7.6bn. A business here can be a single independent practice or a group with many sites, so the average turnover of £2,113,000 is pulled up by the groups.

The figures

Source: ONS Annual Business Survey, 2024 results (published 26 May 2026). It covers businesses registered for VAT or PAYE, so the smallest sole traders are not included. Averages are pulled up by the largest firms. For sole traders and partnerships, the owners’ own pay is not in staff costs: it comes out of what is left.

How it has changed since 2019

Veterinary activities: turnover rose 69% between 2019 and 2024, against a 24% rise in consumer prices, so it grew in real terms. The number of businesses fell 11%. Staff costs went from 33.6% to 41.0% of turnover, and what was left after staff and bought-in costs went from 29.3% to 19.3%.

Turnover grew much faster than prices over this period, while the number of businesses fell, which is consistent with practices joining larger groups. At the same time, staff costs took a bigger share of turnover, and the share left after costs fell.

What this means for a veterinary practice

• Clinical time is the product. Track how much of each vet's and nurse's paid time is spent on consultations and procedures, and what pulls them away.
• Recruitment and retention. With staff costs over 40% of turnover, every vacancy filled by locums and every leaver replaced is expensive.
• Drugs and consumables stock. Hold enough to treat without delay, but watch expiry dates and slow lines.
• Charge for everything delivered. Missed charges for consumables, out-of-hours work or extra time are common leaks.

Compare your practice

Guides that fit this sector

• Utilisation: clinical time against paid time.
• True cost of an employee: the full cost of each member of staff.
• Staff turnover cost: what each leaver costs.
• Stock turnover and EOQ: drugs and consumables.