Locum - Doctor

[enrules]

Hi,
I am new to this forum so apologies if this has been covered before. I am an full time NHS employee on PAYE scheme with an income tax of. I will be doing a few additional locums every month with an average monthly locum gross earnings of 2500. Is it more tax efficient to have an accountant and set up a limited company for my locum pay or should I go with an umbrella company (which I have read mixed opinions about here).

Thank you for your help!

[Martin at NixonWilliams]

Hi,
I am new to this forum so apologies if this has been covered before. I am an full time NHS employee on PAYE scheme with an income tax of. I will be doing a few additional locums every month with an average monthly locum gross earnings of 2500. Is it more tax efficient to have an accountant and set up a limited company for my locum pay or should I go with an umbrella company (which I have read mixed opinions about here).

Thank you for your help!

It will be more tax efficient to set up a limited company however with the level of earnings you expect it is unlikely to benefit you that much. Another option is to work on a self-employed basis, this will not be as tax efficient as a limited company but it is very easy to manage as you can smply enter the profits onto your tax return once a year. The accountancy fees would also be much cheaper than with a limited company or umbrella.

I hope this helps.

Martin