Being a locum medical professional is both rewarding and demanding. With the flexibility comes the responsibility of managing fluctuating incomes, varying locations, and, of course, the paperwork. While you’re out there providing invaluable healthcare services, we understand that delving deep into financial intricacies might not be on your list of priorities.
Why Choose Dead Simple Accounting?
Medicine is about precision, and so is accounting. At Dead Simple Accounting, we bring the precision you exercise in your medical practice to your financial world. Whether you’re a locum doctor, a pharmacist on the move, or a traveling nurse, we tailor our services to your unique financial landscape.
Not convinced? Browse through our numerous five-star reviews on Google and Facebook to see what our clients have to say.
The reviews speak for themselves
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Our Pricing
Our specialist package for locum professionals is priced at just £300 , inclusive of VAT. This package covers your self-assessment tax return and provides insights specific to your role in the healthcare sector. For a more detailed estimate or other services, visit our quote page.
When Do You Need to Register as Self-Employed?
If your gross locum income exceeds £1,000 in a tax year (6 April to 5 April), you need to register for self-assessment and file a tax return.
Once the tax year ends on 5 April, you have until 5 October to register with HMRC. You can do this online through the HMRC website, or we can handle it for you.
After registration, HMRC will send your Unique Taxpayer Reference (UTR) by post – you’ll need this to file your return.
Key Deadlines
| Deadline | What’s Due |
|---|---|
| 5 October | Register as self-employed with HMRC |
| 31 January | File your tax return and pay any tax owed |
| 31 July | Second payment on account (if applicable) |
If your tax bill exceeds £1,000, HMRC will ask you to make payments on account – essentially paying next year’s tax in advance, split across January and July.
What Expenses Can Locum Professionals Claim?
Here’s a list of expenses typically claimed by locum doctors, pharmacists, and nurses:
Travel & Vehicles
- Mileage to temporary workplaces (not your regular base)
- Parking, tolls, congestion charges
- Vehicle repairs, servicing, insurance
- AA/RAC subscriptions
- Interest on vehicle finance
Home Office
- Proportion of rent/mortgage interest, utilities, council tax, broadband
- Only if you use part of your home regularly for admin
Professional Costs
- GMC/NMC/GPhC registration
- Royal College or professional body memberships
- Indemnity insurance
- DBS checks
- Revalidation costs
Training & Development
- CPD courses and conferences
- Work-related books, journals, subscriptions
Equipment & Tech
- Laptop, phone (business use proportion)
- Medical equipment you purchase yourself
- Software subscriptions
Other
- Accountancy fees (hello)
- Uniforms and PPE that aren’t suitable for everyday wear
- Locum agency fees
What Can’t You Claim?
Some costs look like they should be claimable but aren’t:
- Travel from home to your regular workplace
- Food and meals (unless working away overnight)
- Client entertaining
- Parking or speeding fines
- Gym memberships
- Childcare
- Clothes that could double as normal wear
- Personal use portion of any expense
Can Contributions Save You Tax?
Yes – but how depends on your setup.
Sole traders: Pension contributions aren’t a business expense, but they can extend your basic rate tax band if you earn over £50,270. This means more of your income gets taxed at 20% instead of 40%.
Limited company directors: Employer pension contributions paid directly from your company are tax-deductible as a business expense – no corporation tax, no National Insurance. Very efficient.
What If You Make a Loss?
If your expenses exceed your income, you won’t owe any tax – but you still need to file a return. The loss can be carried forward to offset against future profits. Or, if you have PAYE income from employed work (NHS shifts, for example), you can offset the loss against that and potentially get a refund.
Do You Need to Register for VAT?
Only if your gross income exceeds £90,000 in a 12-month period. Most locums won’t hit this, but if you’re getting close, get in touch and we’ll advise.
Should You Set Up a Limited Company?
It’s a common question, and there’s no one-size-fits-all answer. A limited company can offer tax efficiencies and limited liability, but it also means more admin, filing accounts with Companies House, and potentially higher accountancy fees.
Generally, it starts to make sense when your profits consistently exceed £40,000-£50,000. Below that, sole trader is usually simpler and just as tax-efficient.
We can help you weigh up the options based on your actual numbers – not generic advice.
Record Keeping
HMRC requires you to keep all business records (bank statements, invoices, receipts) for 6 years plus the current tax year. If they ask for proof and you can’t provide it, penalties follow.
A few tips to stay organised:
- Open a separate business bank account – keeps everything in one place and makes your return far easier
- Use accounting software – something like QuickBooks or FreeAgent to track income and expenses as you go
- Store receipts digitally – snap photos and save to Google Drive or your accounting app
Need Some Further Help?
If you have further questions or require assistance concerning accountancy for locum professionals, be sure to get in touch!
Useful Resources
These days there’s an abundance of tools and resources at your disposal, software that handles your invoices and expenses, to mobile based banks that cut the boring paperwork.
We only work with the best of the best, and have partnered with several big names to offer you various goodies when signing up.
Accounts Software
Bank & Apps
FAQs
Not legally, no. But a good accountant will save you time, keep you compliant, and almost certainly save you more in tax than their fee costs. For £300, it’s a no-brainer.
Nothing – they mean the same thing. You’re running a business as an individual, not through a company.
Only to temporary workplaces. If you work at the same site regularly (broadly, 40%+ of your time over 24 months), HMRC may consider it a permanent workplace – and travel there isn’t claimable.
You’ll declare the locum income on your self-assessment. Your NHS PAYE income gets reported automatically, but it all goes on the same return so HMRC can calculate your total tax position.
When your annual profits are consistently above £40k-£50k, it’s worth running the numbers. Below that, the extra admin usually isn’t worth the tax savings.
Yes – it’s a legitimate business expense for locums.
Claimable. Same goes for appraisal fees and any mandatory training you pay for yourself.
