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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Locums and Off Payroll Working (IR35)

Things changed in 2017

The ‘off payroll’ working rules were introduced to the NHS from 6th April 2017.

NHS authorities must now consider whether these rules apply to anyone working for them through a limited company, an umbrella company, or an agency.

The practical outcome of these new rules means that it is now far less tax efficient for a locum doctor to work for a hospital, CCG or an NHS Trust through a limited company or an umbrella company.

We now generally recommend that a locum doctor working for one of these organisations opts to be paid through the organisation’s payroll. Utilising a limited company or umbrella company will result in a minimal or no saving.

Many GP practices have interpreted these rules differently. Many GP practices do not believe that their locums are affected.

Practically this means that locums working for GPs can still take advantage of limited companies to reduce their tax bills.

How we can help

We will discuss your circumstances before you accept locum work and let you know if the ‘off payroll’ working rules will apply to you.

We will help you decide if there is any alternative to being paid in this manner.

If you do work through a limited company and are paid under the IR 35 (‘off payroll’ working rules) we will help you unravel your corporation tax and income tax returns and advise on any tax bills.


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.



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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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.

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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.


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.