Specialist advice for Locum Doctors

Working as a Locum can give you flexibility and a varied work experience, but making sure you are being paid correctly and not storing up trouble with HMRC can be more difficult, which is where we can help.

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National Insurance Costs for Locums

Many locum doctors will often have at least two sources of income. It is common for locums to have:

  • Self employed locum income.
  • Salaried income from a hospital, PCT or doctors surgery.

Both these sources of income are liable to National Insurance Contributions (NIC’s). A locum doctor will pay NIC’s on their self employed income as well as NIC’s on their salaried income.

There is, however, a maximum amount of national insurance contributions which any individual tax payer has to pay in any year. Often a locum doctor will have paid the maximum national insurance contributions due on their self employed income alone.

Making sure you don’t pay too much

It is not uncommon for the significance of this maximum limit to be missed by an inexperienced or non-specialist accountant. If the accountant does not request that the national insurance contributions are refunded, the locum doctor will pay more national insurance than is due.

The Inland Revenue has no procedure to prevent this from happening and it would not be unusual for a locum doctor to pay £1,500 per annum in unnecessary contributions.

Paying extra gets you nothing, there are no additional benefits for these additional contributions.

How we can help with National Insurance

One of the first things that we will do when appointed to act for a locum doctor is to check what National Insurance Contributions are being paid and ensure you are not overpaying.

Better still, if the contributions have been overpaid in the past, we are able to reclaim the overpayment (going back up to 4 years).

For many of our locum doctor clients we obtain significant refunds of national insurance on an annual basis.

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Contact us for specialist medical accountancy services for Locums

If you’re looking to plan your finances for the future or trying to find an answer to a problem then get in touch today.

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NHS PENSION REVIEW

Are you in danger of being hit with a huge tax bill on your pension growth? Our NHS Pension Review Service can provide an advance warning of impending pension issues.

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TAX ENQUIRY PROTECTION

HMRC have increasingly got GPs in their sights and many Practices have been subject to lengthy tax investigations. Make sure you’re covered with our annual insurance scheme.

Learn more →

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EXPERT CONSULTATION

Talk to one of our Medical Accounting Team for free. We can discuss your circumstances and how we can help you achieve better financial management, reduce your tax bills or plan for the future with a tailored fixed price plan.

Meet our team

We have a panel of subject experts and a team of professional accountancy support staff to make sure your specific needs are met reliably and cost effectively.

HOW WE CAN HELP

A specialist healthcare team to advise you
Call free for support at any time
Keep you up to date with the latest changes
No fuss, smooth process to change to us
Members of AISMA - Association of Independent Specialist Medical Accountants

What our clients say…

Dr Ravi Bansal, Locum GP

I’ve been with Nichols and Co for nearly 10 years with Debra being my accountant. I first contacted them when I received letters for tax arrears due to the wrong tax codes being applied during my hospital jobs.

Debra sorted this matter out and has always provided helpful and honest advice regarding tax matters. She has also helped my wife with her tax returns. I would definitely recommend their services for accounting matters with a special interest in helping doctors with their tax affairs. They are approachable, helpful and efficient.

Dr Jayran Mistry, Locum

Thank you for everything you at Nichols & Co have done for me with regard to my tax returns to date. I have always felt I am able to approach you with any question and that the answer is always helpful and thorough.

I am very grateful for how detailed, clear and efficient you are with tax returns and letters and for expediting things when needed. Every time I make contact with you I am met with polite staff and helpful advice and I have spoken with many of my friends about the service you provide and how good I think it is. I always recommend you. Thanks very much again, I really appreciate your hard work and help.