Specialist Accountants for Locum Health Professionals

IR35 applies when you provide services through an intermediary (such as your limited company) to an end client like the NHS. The key question is: would you be considered an employee if you contracted directly? HMRC examines three main status tests: control (who decides how/when you work), substitution (can you send a replacement), and mutuality of obligation (is the client obliged to offer work and are you obliged to accept). Most locum GPs and hospital doctors working through agencies with individual shift control can demonstrate self-employment, but each engagement must be assessed. We review contracts and working practices to determine IR35 status and advise on compliance. Explore contractor IR35 services.

A limited company is usually more tax-efficient for locums earning over £35,000-£40,000 annually. You can pay yourself a combination of salary and dividends, make employer pension contributions, and claim a wider range of expenses. An umbrella company is simpler — they handle all tax and NI but you'll typically keep less net pay (as a PAYE employee). Umbrella may be suitable for short-term locums, those inside IR35 for all roles, or those who want minimal admin. We'll run the numbers for your specific situation and show you the difference. View limited company services.

Yes, locum GPs can access the NHS Pension Scheme as "type 2 medical practitioners." You must submit a Locum A and Locum B form for each locum engagement, and pension contributions are calculated based on your "pensionable locum earnings" (gross locum income less practice expenses such as room rental, but not including travel or professional fees). Contributions are tiered from 5.2% to 14.7% depending on earnings. The NHS also pays an employer contribution of approximately 23.7% on your behalf. We handle the full NHS Pension calculation and submission process. See self assessment services.

Locum healthcare professionals can claim: travel to temporary workplaces (including mileage at HMRC rates), accommodation when working away from home, professional registration fees (GMC, NMC, GPhC, HCPC, GDC), medical indemnity insurance (MPS, MDU, MDDUS), DBS checks, uniform and clinical clothing, stethoscopes and medical equipment, CPD and training courses, professional subscriptions (royal colleges, associations), home office costs, and telephone/internet. For limited company locums, you can also claim employer pension contributions and certain subsistence expenses. We ensure every allowable expense is identified and correctly claimed. View sole trader accounting.

Working across multiple agencies and trusts is common for locums. If you operate through a limited company, all income flows into your company regardless of the number of sources, and we handle the consolidated accounting. If self-employed, you report all locum income on a single self assessment tax return. We reconcile agency remittance advices, NHS trust payments, and private provider income, tracking expenses per assignment to ensure no income is missed and every expense is captured. Learn about cloud accounting.

Agency PAYE means you're paid as a temporary employee with full PAYE and NICs deducted — simplest but lowest net pay. Umbrella companies also pay you via PAYE but charge a fee (often £15-£30/week) and deduct employer's NIC (13.8%) from your gross rate before calculating your pay — meaning you pay both employer and employee NICs. A limited company gives you the most control and typically the highest net retention: you invoice the agency gross, pay yourself via salary and dividends, and can make employer pension contributions that reduce corporation tax. For a locum earning £80,000/year, the limited company route can be £8,000-£12,000 more tax-efficient than umbrella. View company formation services.