Why GPs should hire specialist locum accountants

Locum GPs face specific financial hurdles due to the nature of their work, from variable income to managing taxes. These complexities often require the help of an accountant who understands the unique needs of locum doctors. Let’s look at the key reasons why GPs should consider working with a specialist locum accountant.

1. Specific knowledge of taxation for locum doctors

Specialist locum accountants have a solid grasp of the tax rules that apply to locum doctors. Whether it’s handling self-assessment tax returns, VAT, or IR35 regulations, these accountants can help reduce tax liabilities. They also know how to identify and claim relevant business expenses, such as mileage, insurance, and equipment, that general accountants may overlook.

2. Managing irregular income and cash flow

Locum GPs often have inconsistent income, making it harder to budget and plan. A specialist accountant can provide practical advice on managing cash flow, helping GPs stay on top of their tax obligations and set aside funds for leaner periods. This ensures that financial stability is maintained, even when income fluctuates.

3. IR35 and other regulations

Locum GPs who operate through limited companies need to be aware of IR35 rules, which determine whether they are taxed as employees or contractors. Specialist accountants can guide GPs on how to structure their contracts and working arrangements to maximise tax efficiency and comply with regulations, reducing the risk of costly mistakes.

4. Pension and retirement planning

Locum doctors are responsible for managing their own pension contributions, which can be a challenge. Specialist accountants can advise on how to contribute to the NHS pension scheme or set up alternative pension arrangements, making sure that GPs are well-prepared for retirement while staying tax-efficient.

5. Tailored financial advice

The financial needs of locum GPs differ from those of salaried doctors. A specialist accountant can offer tailored advice that takes into account the unique challenges of locum work. This might include planning for savings, investments, insurance, and long-term financial goals.

Conclusion

For GPs working as locums, hiring a specialist accountant is crucial to staying on top of taxes, cash flow, pensions, and compliance with regulations. A specialist accountant understands the unique needs of locum doctors and provides practical advice that helps GPs focus on their work without worrying about their finances.

Get in touch to learn how a specialist locum accountant can help you manage your finances and secure your future.