Locum Pay Tax Calculator

Calculate take-home pay and tax for locum healthcare professionals. Includes self-employed NIC, expenses, and NHS pension contributions.

Locum Healthcare Professional Tax Calculator

Frequently Asked Questions

Is a locum doctor self-employed or employed?

It depends on the arrangement. GP locums and hospital locums working through their own limited company or as sole traders are typically self-employed. Bank doctors working directly through NHS trusts are employed (PAYE).

What expenses can locum doctors claim?

Indemnity insurance (MDU/MPS), GMC registration fees, BMA membership, CPD/training courses, professional journals, travel between bases (not home to work), home office if used for admin, and accountancy fees.

Do I need to pay NHS pension contributions as a locum?

NHS pension contributions are optional for locums who work through their own company or as self-employed. Employed bank workers may be automatically enrolled in the NHS Pension Scheme.

What is the NHS pension contribution rate?

NHS pension contributions are tiered based on pay. For 2025/26, rates range from approximately 5.1% to 12.5% depending on gross pensionable pay, with a separate employer contribution of 23.7%.

Should I work as self-employed or through an umbrella for locum shifts?

Self-employed gives more control over expenses and tax planning. Umbrella is simpler but pays higher employer NIC from your rate. NHS-direct bank shifts are PAYE. Compare take-home for each arrangement.

Does IR35 affect locum doctors?

IR35 can apply if you work through a limited company but behave as an employee (e.g., working exclusively at one NHS trust). Public sector IR35 rules (off-payroll working) require the end client (NHS trust) to determine IR35 status.

What is the off-payroll working rule for NHS locums?

NHS trusts are public sector bodies and must determine IR35 status for locums working through their own companies. If deemed inside IR35, the trust operates PAYE on the engagement.

Can locum pharmacists claim retail hours expenses?

Yes. Expenses must be 'wholly and exclusively' for the purpose of the locum work. Travel between locum sites (not commuting), professional fees (GPhC registration), indemnity, and CPD are all claimable.

Do I need a limited company as a locum?

Not necessarily. Many locums work as sole traders (registering as self-employed) which is simpler. A limited company may save tax at higher income levels but adds administration.

What is the locum GPs payment structure?

Locum GPs typically charge a session rate (usually half-day) or daily rate. HMRC expects them to be treated as self-employed as they can work for multiple practices and set their own terms.

How does the personal savings allowance apply to locums?

Basic and higher rate locums get the same PSA as any other individual (£1,000 or £500 depending on tax band). There's nothing specific to locum work regarding savings.

What records should a locum keep?

Dates, locations, hours, and income from each locum engagement. Receipts for all expenses. Mileage logs. Bank statements. HMRC recommends keeping records for at least 5 years after the self-assessment deadline.