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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Limited Companies for Locums

Can be a tax efficient choice

Structuring yourself as a limited company can be a very attractive business structure. In the right circumstances it is possible for a doctor to achieve savings by:

  • Splitting their income with a spouse or civil partner.
  • Arranging for income to be taxed at 20% rather than the higher 40% or 45% tax rates.
  • Reduce National Insurance Contributions.

However, as a locum doctor working through your own limited company, you need to consider whether the IR35 regulations / ‘’off payroll’’ working rules apply to you.

‘Off Payroll’ Working Rules (IR35)

Since these were introduced in 2017 it is now very likely that if you work through a limited company your employer will pay you subject to PAYE, with tax deducted at source. This means it is often now far less tax efficient to work through a limited company.

Agencies

Agencies are now often obliged to operate the ‘off payroll’ working rules. In effect this means that a locum will very often be subject to PAYE on any work completed through an agency.

Helping you make the right choice

Whether or not a limited company is the right business structure for a locum doctor depends upon the doctors individual financial and personal circumstances.

We are very experienced in looking at your circumstances and determining the best business structure for you as a doctor.

We can then advise you on the best business structure will keep your tax to a minimum.

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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.