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Locum Doctor Advice?
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jabberwock95
Posts: 11 Forumite
in Cutting tax
Hi, apologies if this topic has already been discussed.
I'm a junior doctor who is doing full time locum work. Up to now I have been directly employed by my trust however I want to switch to working for a locum agency.
As far as I understand it there are three options for being paid. Some agencies will pay you via PAYE, you can work for an umbrella company, or you can set up your own limited company.
Most doctors I've spoken to seem to set up their own company and say the tax benefits are significant, but from reading around it looks like locums are at high risk for being inside IR35 legislation which negates a lot of the tax benefits. My suspicion is that a lot of doctors are operating outside IR35 but would be at big risk if they were ever investigated.
So, does anyone have any advice about what payment method I should go for?
I'm a junior doctor who is doing full time locum work. Up to now I have been directly employed by my trust however I want to switch to working for a locum agency.
As far as I understand it there are three options for being paid. Some agencies will pay you via PAYE, you can work for an umbrella company, or you can set up your own limited company.
Most doctors I've spoken to seem to set up their own company and say the tax benefits are significant, but from reading around it looks like locums are at high risk for being inside IR35 legislation which negates a lot of the tax benefits. My suspicion is that a lot of doctors are operating outside IR35 but would be at big risk if they were ever investigated.
So, does anyone have any advice about what payment method I should go for?
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