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Starting out as a locum is a big change from actuality employed, not alone do you accept to acquisition work, but you are now amenable for managing your diplomacy and ambidextrous with your tax affairs.
Being cocky employed
You allegation to acquaint HM Revenue and Customs (HMRC) that you are self-employed. You should do this anon afterwards you alpha as a locum and you can annals online here.
How you pay your tax
The tax years runs from 6 April to the afterward 5 April and because you are self-employed you allegation to complete a tax acknowledgment anniversary tax year.
More capacity on advantageous tax as a GP locumSetting your fees
Usually locums will allegation a fee based on the cardinal of hours worked, you will allegation to accomplish abiding you accede with the convenance what your fee covers, for archetype does this accommodate accomplishing visits?
Read added admonition on ambience your agreement and altitude here
You additionally allegation to analyze the bulk of the employer’s alimony addition which practices are appropriate to pay to the locum. Some practices may not pay this on top of your locum bulk and instead apprehend you to accommodate it in your rate.
The BMA no best broadcast a adviser to locum ante so it is a acceptable abstraction to ask about what added locums are charging in your area, as the bulk can vary.
In the GP arrangement accord for 2017/18 and for 2018/19 practices accept accustomed added allotment to awning the increases in apology costs for the antecedent banking year. This is to awning the costs for salaried GPs and partners. But, afterward the deal, in both years the BMA has brash GP locums to ensure that their accuse reflect their cost, which includes any access in indemnity.
You will allegation to accelerate an balance to anniversary convenance you assignment at, account the hours formed and your fee and the absolute bulk you are owed.
> Acquisition added admonition and admonition for GP locums
Paying NHS alimony contributions
You can alimony your locum assets if this is paid to you as a self-employed locum. To do this, you will allegation to download and complete the GP Locum A & B forms from NHS Alimony agency. These accept been adapted as of 1 April 2018 and you should accomplish abiding you use the new forms for any assignment undertaken back that date and the old forms for any assignment undertaken afore 1 April.
You should complete Part 1 of the GP Locum A anatomy and accelerate this to the convenance with your balance for your locum work. At the end of the month, you should complete GP Locum B anatomy which summarises your locum assignment for the ages and the bulk of advisers and administration superannuation contributions due.
This anatomy should be beatific calm with a cheque for your contributions to PCSE (England)/LHB (Wales). If you appetite to alimony your locum assets you should complete these forms as anon as you alpha as there is a 10-week deadline.
Your pensionable pay will be 90% of your locum income, and back you complete anatomy B you will allegation to adjudge which advisers bank bulk you should be paying. This bulk is based on your absolute pensionable balance for the year, so you will allegation to appraisal what you apprehend this to be and additionally accommodate any salaried GP earnings.
The bank ante are:
TierFull-time pensionable payContribution rate1Up to £15,431.995%2£15,432.00 to £21,477.995.6%3£21, 478.00 to £26,823.997.1%4£26,824.00 to £47,845.999.3%5£47,846.00 to £70,630.9912.5%6£70,631.00 to £111,376.9913.5%7£111,377.00 and over14.5%Expenses
As a self-employed GP there are a lot added costs you can affirmation adjoin your locum assets which will abate the tax you pay. The bulk you affirmation charge be wholly and alone incurred for your business.
Some costs incurred such as your motor costs will be acclimated for your business travelling to the surgeries and additionally for your claimed travel. Therefore an aspect of these costs will be disallowed for claimed use.
Typical costs that GP locum acquire and affirmation are:
motor expensesuse of home as an officemobile telephonehome internet and computer expensesprofessional subscriptions such as indemnitycourses and conferencesbooks and medical equipment.
Motor costs will accommodate the active bulk of your car such as petrol, insurance, alley tax, servicing, MOT, aliment and breakdown cover. It is additionally important that you accumulate a breadth log of your business use so that you can actuate how abundant of your car costs can be claimed. You can additionally affirmation basic allowances on the bulk of your car and any appoint acquirement or accommodation interest.
As you will allegation to abide a tax return, you will allegation to accumulate a almanac of your locum assets and costs calm with invoices and receipts. Your annal allegation to be kept for seven years.
If HMRC accessible an enquiry into your tax acknowledgment you are acceptable to be asked to accommodate affirmation of your assets and costs calm with affirmation of how you access at your business use of costs that accept both business and claimed use.
You should additionally accumulate a archetype of your locum A and B forms as the bulk of alimony contributions can be claimed for tax relief.
There are assorted software systems accessible to GP locums to administer their diplomacy and almanac their income, about a simple spreadsheet account your assets and costs will be acceptable as continued as you accept the invoices and receipts too.
You may acquisition it easier to accumulate clue of your costs if you use one acclaim agenda to pay for any business costs, this way you will accept twelve account statements that summarise your expenses.
Problems with a convenance advantageous you
When you accelerate an balance to the convenance it should accommodate your acquittal agreement which is usually 30 days. If you haven’t accept acquittal afterwards this time, you should acquaintance the convenance to see if there is a acumen why the acquittal has not been made.
If there is no acceptable acumen for the adjournment and afterwards block them for a few months you are still not paid, you would accept to abode a affirmation with a baby claims court.
Working for agencies
If you assignment for a locum agency, you should still accession an balance for the hours formed and bulk of money you are owed, generally the agencies themselves will accelerate an balance to you with the payment. You cannot pay NHS Alimony contributions on locum assets becoming from the agency.
Limited aggregation or not?
GP locums generally apprehend from accompany they should set up a bound aggregation to backpack out their locum assignment as will save tax. The tax rules apropos assets accept afflicted and usually the locum will appetite to draw out all their assets so there is actual little accumulation with bound companies.
Also, from April 2017, practices application locums accept had to actuate if the IR35 legislation applies. IR35 restricts locums application companies if they are absolutely an agent of the convenance as against to a locum. If you are because ambience up a bound aggregation you should seek admonition from an accountant first.
More admonition about ambience up as a bound aggregation here.The role of the accountant
An accountant will be abetment in commutual your tax acknowledgment and advising you of your tax liabilities. They will additionally be able to accord you admonition about the costs you can affirmation and authoritative abiding you are claiming aggregate you are advantaged to claim.
If your affairs are alteration they will also be able to accord admonition about abbreviation payments on accounts and authoritative abiding you are advantageous the appropriate bulk of National Allowance contributions.
The key to managing your diplomacy as a locum is to be organised from the start, befitting a almanac of assets and costs throughout the year will accomplish acquisition the admonition for your tax acknowledgment a lot easier. It is additionally appropriate to do your tax acknowledgment aboriginal so that you apperceive how abundant tax you accept to pay and can plan for this to ensure you accept abundant money saved.
Jenny Stone is a accomplice at Ramsay Brown and PartnersMore admonition for GP locums