As specialist locum doctor accountants, we have the knowledge and expertise to help locums and medical professionals to save more of their hard-earned cash with our straightforward strategic tax planning services.
Welcome to AudTax, Specialist Accountants for Locum Doctors & Medical Professionals
Whether you are a doctor in general practice and are currently considering becoming a locum or have been working as a locum medical practitioner for some time, we are here to assist you.
At AudTax, we have experience supporting many healthcare specialities, including locum doctors, consultants, nurses, pharmacists, dentists, aesthetic clinics, optometrists and other medical professionals.
Often, it’s about providing the function of a traditional payroll and accounts department, although we will offer advice on reducing your tax liabilities, personal tax planning and corporation tax guidance.
We can assist you in setting up your own limited company, help to manage your national insurance contributions and tax returns. As your dedicated accountant partner, you can rest easy knowing your business finances are in the best hands.
To find out more about our accounting services, contact us today.
How can locum doctors reduce taxes?
You work hard, so it makes sense to find ways through savvy financial planning to be more tax efficient. At AudTax, we can help you legitimately reduce your tax bills so that you can enjoy more of your hard-earned money.
As a self-employed locum doctor, you can deduct business expenses before paying taxes. Eligible business expenses include a variety of things, from your medical indemnity and equipment right through to travel costs and parking tickets.
If you are a locum doctor and have chosen to set up and operate through a limited company, you can take advantage of the various forms of tax relief this type of business offers.
Tax planning with a specialist locum accountant can also help reduce overall tax liability as you can structure your income tax efficiently.
At AudTax, we offer various tax services, including information and advice on pensions, ISAs and the benefits and drawbacks of operating as a sole trader.
What can I claim as a locum doctor?
Most locum doctors that are self-employed can claim many expenses, provided they are for business use. This reduces the overall tax they pay.
You can claim expenses like mileage, motor expenses, mobile phones, lunch, entertainment, trivial benefits, and other costs to reduce your overall tax liability. You just need to remember to keep a record of your locum income and expenses alongside any invoices and receipts.
At AudTax, we use several online cloud accounting packages that provide instant access to your business accounts and track and log your expenses for you.
How much do locum doctors get taxed?
If you are a locum and are set up as a limited company, then your own limited company will pay corporation tax. This is why, as a locum doctor, you may choose to pay yourself a combination of salary (tax-deductible expense) and dividends (taken out of post-tax profits).
If you are self-employed, you will pay income tax and national insurance based on your total income and profits.
Can locum doctors be self-employed?
When you decide to work for yourself, you effectively become self-employed. This means you must let HMRC know your employment status so that you pay the correct amount of tax. This applies to locum pharmacists, locum nurses, and healthcare professionals.
This is why it is so important to find a good accountant who can help you submit your own tax return each year and ensure that you remain tax compliant.
Do locum doctors pay VAT?
In most cases, as a locum doctor, you will not need to charge VAT for your services as you are working directly with patients – however, this will depend on how you are operating and the healthcare position you hold. For example, if you are providing aesthetic services, then you may need to charge VAT to your clients, depending on the nature of the treatment.
VAT can be complex which is why you should seek the advice of a specialist accountant.
What is IR35?
IR35 deals with businesses that contract workers on a self-employed basis or through their own limited company rather than hiring them as employees.
Locum pharmacists, doctors and nurses that deem to fall within the scope of IR35 (and thus qualify as employed) must pay employment taxes – income tax and national insurance – through PAYE like all other employees.