Locumming 2021

RE: Locumming 2021

Yantha Smyth — Mon, 15 Feb 2021 15:19:27 GMT

2021 is probably not a good year to set up a Ltd company for locuming, and for the amount of work you are considering may not be worthwhile anyhow. As Clive says there are still advantages to SE over a Zero hours contract, IF you fulfil the SE criteria and IF the practices accept SE/sole traders.

I am Ltd, and it is very unclear beyond April if this will be viable going forwards- the corporate practices are about to stop engaging with Ltd at all once the IR35 reforms are introduced in April.

I do not like what I have seen of Umbrellas- you effectively fund the employER and employEE NI, pension, holiday pay, umbrella fees, and apprenticeship levy plus PAYE, which leaves you with about 60% net, and unable to claim much if anything in the way of expenses.

RE: Locumming 2021

Gillian Mostyn — Wed, 10 Feb 2021 22:18:44 GMT

[quote userid="5012" url="~/001/nonclinical/f/life-in-practice-discussions/29660/locumming-2021/228429#228429"]It still makes financial to be self-employed as opposed to PAYE.[/quote]

I don't know about the financial side of being self-employed - I've always been Ltd. I was more referring to what is likely to be the easiest option to need the least accountancy and the one most employers will be happy with. Many larger employers won't accept a self-employed locum, and for working only one or two days a week, the NI difference won't be as much.

RE: Locumming 2021

Clive Ansell — Mon, 08 Feb 2021 13:18:15 GMT

[quote userid="2457" url="~/001/nonclinical/f/life-in-practice-discussions/29660/locumming-2021/228403#228403"]Probably easiest to just go PAYE on a zero hours contract. You'll be told by people who have been working as a sole employee for their own Ltd company that you'll be worse off ... But that is because they were putting any earnings over the tax bracket through as dividends rather than income, so paying only 10% tax on them. We'll all now be paying the same tax as everyone else ... which is only fair anyway.[/quote]

It still makes financial to be self-employed as opposed to PAYE. Main difference is that national insurance contributions are 9% instead of 12% on earnings between £9500 and £50000 PA. That's £1200 PA in your wallet. In addition you can still offset work related expenses against tax. Also, there is employers NIC of 13.8% too with PAYE.

I can't speak for being a Ltd co, as I am not.

Don't forget it is still perfectly legal to be self-employed, despite IR35. The corporates just choose not to assess each locum on a case by case basis for SE vs PAYE status.

All that said, I wonder what is coming down the line - the Chancellor has already hinted at a tax raid on the self-employed.

RE: Locumming 2021

Gillian Mostyn — Sun, 07 Feb 2021 19:49:07 GMT

Lots of work for locums in my area (North West England.)

As far as charging, for an experienced vet who is happy sole charge you can ask about £30 an hour ish...but you'll need to decide what you deserve depending on the job you're offered ... Some placements are more difficult or antisocial than others.

If you're only just starting to locum then IR35 needn't apply ... Probably easiest to just go PAYE on a zero hours contract. You'll be told by people who have been working as a sole employee for their own Ltd company that you'll be worse off ... But that is because they were putting any earnings over the tax bracket through as dividends rather than income, so paying only 10% tax on them. We'll all now be paying the same tax as everyone else ... which is only fair anyway.

I started to locum 2 years ago and got lots of help from locums on here, for which I was very grateful. I love my job now. Send me a PM if you have any questions I can help with.

RE: Locumming 2021

Jill Butterworth — Sun, 07 Feb 2021 18:27:37 GMT

You sound perfect! I did the kind of locuming you are describing for many years, you only need a few practices that are a good fit, for it to be sustainable and comfortable. There is definitely a demand, from what I am hearing on the grapevine. Market yourself well with a good CV and Linked In profile, being there at the right time when the boss needs a day off can be a good way to start, before a regular opportunity arises. Word of mouth is the best. Others will be along with up to date encouragement