When you are just starting out as a self employed Locum it can be an busy time, getting used to a new way of working and new flexibility in working patterns and shifts, however it is important that you get your new status recognised by the HMRC and that you follow the rules to make sure you are not storing up trouble for the future.
New Locum Checklist
- Inform HMRC that you have started self-employment work.
- If you do not intend appointing an accountant you can do this either by submitting a form CWF1 or notify them on line using HMRCs website. The CWF1 form is also available on HMRCs website.
- Alternatively your accountant should be able to do this for you.
- Consider the types of expenses you will incur.
- If you consider the types of business expenses you will incur from the outset, then you are more likely to claim for everything that you can and to keep adequate records of expenses incurred.
- You just record the expenses properly, so get into the habit early on!
- Consider how much tax you need to set aside from your income to meet your tax liability when it falls due.
- This is something that we can help you with. There is not a standard percentage which applies to all locum doctors. The amount you will need to set aside will depend upon the level of your income and also the other sources of income you have.
- Know when your first self-assessment tax payment will be due and when subsequent payments fall due.
- We often find that locum doctors are caught out by unexpectedly high tax liabilities as a result of the payment on account regime.
- We can warn you of the payment dates and likely amounts so you can ring fence the money.
- Submit forms to HMRCs National Insurance office, to ensure that you do not overpay National Insurance.
- If you are working for an NHS Provider, review the superannuation forms that need to be completed.
- Consider how to keep your business records.
- These days there are smartphone apps and software that can make it easier than ever to keep receipts and good records, we can advise on these so you start out right.
How we can help
We can advise you on this whole process or carry it out on your behalf.
