Financial foundations for DFT

You’ve made it through dental school - final exams, portfolios and late-night cramming sessions are now behind you (sort of). As you step into DFT and you’re focussed on the clinical side of things, you may also be thinking about the financial leap and money management.

Read on to find out more on what to expect financially in DFT…

You’re now an NHS employee - what that means financially

During DFT, you’re employed by the NHS under a fixed-term contract, with a set annual salary. This means:

• You’ll be paid monthly through the Pay As You Earn (PAYE) system
• Your income tax, National Insurance (NI) and student loan repayments will be automatically deducted
• You’re entitled to paid annual leave, sick pay and NHS pension contributions

Unlike associate dentists, you don’t yet need to submit a tax return or worry about setting aside money for tax.

Top tip: Check your payslip each month to ensure your tax code is correct. Mistakes here can cost you later.

Understanding your payslip (without the jargon)

Your DFT payslip might look confusing at first, but here are the key things to look out for:

• Gross pay: Your total salary before any deductions
• Tax and NI deductions: Compulsory contributions to HM Revenue and Customs (HMRC)
• Student loan: Automatically deducted if you're earning above the threshold
• NHS pension: You’ll be automatically enrolled into this
• Net pay: What actually lands in your bank account

Why it matters: Understanding your payslip now builds the confidence you’ll need when your income becomes more variable as an associate.

Budgeting on a fixed salary

Although your income is stable during DFT, you may find it doesn’t stretch as far as you'd like.

Here’s how to stay financially in control:

• Start with your net pay (take-home amount)
• Create a simple budget across key areas (such as rent and bills, food and transport, savings (even a small amount is worthwhile), discretionary spend (subscriptions, social life, takeaways etc.))
• Use a budgeting app or a spreadsheet, whichever works for you, to keep track of your spending

Pro tip: Treat saving like a bill. Consider setting up as standing order, even if it’s just £25. Small habits now build long-term security.

What else to consider financially during DFT

• Build an emergency fund if you can

Life tends to throw us curve balls and having a little financial security to deal with them can relieve some of the stress. Also, having a little set aside will give you flexibility when DFT ends and you likely transition into an associate role.

• Understand your student loan repayments

You’ll repay a percentage of your pay over a certain threshold, depending on which plan you’re on. It’s automatic through PAYE, but it helps to understand how it works - especially if you’re planning to move abroad or pay it off early.

• Start thinking ahead

If you’re transitioning into the world of associateship after DFT, your financial world changes. You’ll likely move into self-employment, where you’ll need to manage tax returns, pension contributions and irregular income.

While it’s not urgent now, understanding what’s coming next will give you a head start.

In summary: Your DFT financial to-do list

• Understand your payslip and deductions
• Create a realistic monthly budget
• Start a savings habit (even small amounts)
• Build an emergency fund
• Learn the basics of student loan and pension contributions
• Start reading up on what changes after DFT

Final word

You’ve worked hard to get here. DFT is your launchpad into a rewarding career - and your financial habits now will shape how secure and confident you feel in the years ahead.

For more tips and tricks, why not download our DFT financial survival guide?