All over the world, many of the doctors choose locum work such as full-time residential work, hospital agency work, full-time non-residential work and GP agency work, because of the flexibility in their work area. In terms of payment, the agency or hospital pays locums directly by “PAYE” (pay as you earn) system and deduct tax, NI contributions from salary or income. Conversely, if locums are a self-employed or setting their own business, they will be liable for tax deduction on their profits, turnover, pension, business expenses, national insurance and net profit. If you are planning for organize your own General Practice locums then you need to decide your rate or charge with the practice after comparison with other’s charges of that particular area and marketing strategies.
Moreover, the decided rate will affect your yearly income and expenses such as rent, mobile phone bill, other medical bill and vehicle costs.
Keep up your sales and purchases receipts & other important records to be able to fill out a Self assessment tax return accurately and you can use some allowances such as capital allowances, personal or equipment allowances to reduce the tax impact. Total allowable tax deductions from your salary include your office expenses, public transport or vehicle expenses, computer or internet expenses, study costs, cell phone costs, insurance and pension contributions during the tax year.
Apart from this, any other sell or purchase expenses during the tax your may affect your deductions, for all over the calculations you should consult or hire a medical accountant for important IR35 guidelines and aspects regarding proper estimation of your account. Indeed, an accountant will help an employee or an Organization or trader to overcome from tax entailments and provide different chargeable services on the time. When you are a self-employed, they will deduct business expenses form your revenue and send you a tax form for annual tax return.
You should to submit your tax return as soon as possible by the end of the year and pay tax on the time under guidance of your accountant; otherwise you will be liable for late penalties or dues. In the self-assessment tax return procedure, you will need to submit some important documents of employment account & benefits detail, taxable & payable expenses detail of, allowances detail, bank statements etc. An independent legal entity or a private firm or a limited firm will need to send annual account statements and total turnover or profit details to an authorized body to deal with tax affairs. Generally, they pay corporation tax on their profits and are owned in turn by shareholders and can able to limit their charges.
Several well-known accountancy bodies are working in this field with the expert accountants for locum doctors,nurses, hospital locums, general practitioners or other health professional to maintain their accounts. In addition, before initiate with the tax refund assignment, a limited firm has to follow some more legal requirement for respective extra paper work with the higher accountancy charges to complete their responsibility.