Benefits of being a Locum and working through your own limited company
Firstly what are advantages of becoming a locum doctor:
- Guaranteed work due to high demand for the profession
- Flexibility to work when and where you want
- Good short or long term lucrative opportunities
- A chance to diversify yours skills and experience in different locations
- Favourable rates of pay
- Overseas head hunting programme
Working as locum through your own limited company has many monetary benefits and perks too. From a general point of view, if you are a locum working through your limited company your disposable income will be approximately between 75 – 80 % of your daily rate, for example:
Daily rate £200 your disposable income is between £150 – 160
Daily rate £300 your disposable income is between £225 – 240
Daily rate £400 your disposable income is between £300 – £320
Daily rate £600 your disposable income is between £450 – £480
Most accountants will tell you that working through your limited company in the most productive tax efficient way possible. However, you should create a company in the UK and not getting confused with some other uncompromising and illegal tax schemes currently being offered. If you live and work in the UK then you are bound to pay tax in the UK. There are other strange tax schemes being offered, HMRC does not approve them as they are anti tax avoiding schemes. Remember that as a tax payer you have collective responsibility to pay tax under Income tax act of 2007.
From our experience of dealing with locums and other medical professionals it seems that they only spend 30 minutes of their time in managing administrative duties per month, provided you work with an experienced accountant. If you yet to form a limited company then the overall process are straightforward it literally takes 10 minutes to form a company.