locum work

Re: locum work

bob lehner — Mon, 27 Jan 2014 09:27:23 GMT

I think the main issue with being self-employed is that you pay your own NI contributions - whereas if you are an employed person then your employer must also contribute.

The problem can, even arise years, later if the Inland Revenue investigate the practice books and decide that a regular locum who was paid on a self-employed basis was in reality an employee - they will then claim back all the unpaid NI employer's contribution plus interest and penalties etc.

A self-employed locum needs to have a contract with the practice which spells out in detail how they are 'self-employed'. Things like having no right to any holidays or sickness pay/pay all your own professional subs/ pay your own professional indemnity cover/responsible for your own tax and NI/ provide some of your own equipment, clothing, car etc.

You must also register as self employed with the IR.

Re: locum work

Francisco Gomez — Mon, 27 Jan 2014 06:51:54 GMT

Ive always had to pay my own VDS while locum as ltd company. Some businesses wouldn't let you work for them otherwise (and I don't blame them)

Re: locum work

CatherineThomas — Mon, 27 Jan 2014 06:51:20 GMT

As a locum you need your own VDS cover, although most practices notify VDS that they have a locum and so you replace the vet who you are covering. But the practice policy only covers you while you are at that practice. Hence the need for your own cover in case a complaint is made after your stint in the practice is over.

Re: locum work

Malcolm Ness — Mon, 27 Jan 2014 06:39:16 GMT

[quote user="Robin Grimmer"]Basically the Ltd company status absolves the practice of any tax liabilities if they should arise, or there is any dispute in the employment status of the vet concerned.[/quote]

Are there any issues around professional indemnity insurance? I know that many vets' policies automatically cover locums on a one-for-one basis but does this extend to Ltd companies or does the Ltd company have to provide its own VDS or similar?

Re: locum work

mariette asselbergs — Sun, 26 Jan 2014 20:20:04 GMT

The practices I worked for as a self employed locum asked me to state on my invoices that I was working as a self employed locum and that I was responsible for calculating and paying my own tax and NI contributions. That seemed to solve the issue certainly for the practices I worked for repeatedly over the years. You may find that fairly soon you will be working repeatedly for a small number of practices who like you and whom you also like. It is true that the ltd company setup saves you tax but only if you are in the higher income group. If you locum to have a decent income but more and more flexible time off, then there is not much advantage in the ltd set up.

Mariette

Re: locum work

Robin Grimmer — Sun, 26 Jan 2014 20:01:40 GMT

Basically the Ltd company status absolves the practice of any tax liabilities if they should arise, or there is any dispute in the employment status of the vet concerned.

Re: locum work

John Flynn — Sun, 26 Jan 2014 18:23:32 GMT

[quote user="Sarah Dantas-Holmes"]Thanks for all the help. One thing I don't quite understand is why some practices don't like self employed locums?[/quote]

From my UK locum days...

Whether or not you are self-employed or employed in a particular locum position is a matter of fact to HMRC and not a matter of choice for the locum concerned.

Some clinics, rightly, are concerned that there are always unknowns when it comes to HMRC and that a decision to accept a locum on a self-employted basis now can come back to haunt you in a tax investigation years later.

Should there be a disagreement and HMRC insist that it has not be proven that said locum was self-employed as opposed to a temporary/part-time employee, then the clinic will either be liable for payment of taxes as if the amount paid to the locum had been their take-home pay after tax (perhaps minus any tax paid by the locum on that sum if they can be tracked down etc etc.) or at least a row of correspondance with HMRC.

While it is undoubtedly possible to arrange tax affairs in a manner so as to be confident of winning any argument with HMRC on the matter, to do so requires some confidence in employment law and practice and a willingness to engage in an argument at a later date should the matter be raised.

For some clinics, the potential unknowns and headaches aren't worth the hastle; irrespective of any strongly held opinion on the rights and wrongs of the tax system or whether one should follow the spirit or letter of tax law etc.

Re: locum work

Sarah Dantas-Holmes — Sun, 26 Jan 2014 16:31:59 GMT

Thanks for all the help. One thing I don't quite understand is why some practices don't like self employed locums?

Re: locum work

CatherineThomas — Sun, 26 Jan 2014 14:21:46 GMT

I've been doing locum work for 4 months now. I'm a Ltd company and don't use any recruitment agencies. I have found loads of work just by sending my CV to the local practices, they have all appreciated the fact that they don't need to pay agency fees. I have been fully booked since I started and have had to turn several jobs down because I was already booked.

I pay an accountant to sort taxes and the registering of the Ltd company. He is expensive but i'm hoping he will be worth it in the money i'm saving on taxes.

Re: locum work

Robin Grimmer — Sat, 25 Jan 2014 13:43:33 GMT

I've been a locum now for 5 years, and once before for 2 years. I used to be self employed, as it was simpler and cheaper, but I found that with time, more and more practices won't pay locums on a self employed basis, so had to become ltd company. It was a lot more work involved at first and accountancy fees are higher, but I'm used to it now and depending on how much you work you can make significant tax savings as you won't fall in to the higher rate tax bracket. I would recommend you register for the flat rate VAT scheme.

Re: locum work

Jscvet — Sat, 25 Jan 2014 10:20:53 GMT

Hi, I've just entered into the world of locuming after nearly 9 years in practice, I'd be happy to tell you of my experience so far (though it's limited!). You can always pm me :)

Re: locum work

Sarah Dantas-Holmes — Fri, 24 Jan 2014 16:05:54 GMT

Thanks!

Re: locum work

Neil Wheadon — Fri, 24 Jan 2014 14:25:26 GMT

Lots and lots on this on the search function on the RHS, just type in umbrella

Welcome aboard

Neil