IR35 Reviews for Locum Doctors

What does an IR35 review involve?

For locum engagements with NHS bodies, the hirer must decide IR35 status and issue a Status Determination Statement; the small-company exemption does not apply to public bodies. The test looks at control, substitution and mutuality of obligation in the actual working arrangement. You can ask the hirer to review a determination you disagree with, and it must respond within 45 days.

Can you challenge a Status Determination Statement?

For locum engagements with NHS bodies, the hirer must decide IR35 status and issue a Status Determination Statement; the small-company exemption does not apply to public bodies. The test looks at control, substitution and mutuality of obligation in the actual working arrangement. You can ask the hirer to review a determination you disagree with, and it must respond within 45 days.

What happens if I'm inside IR35?

For locum engagements with NHS bodies, the hirer must decide IR35 status and issue a Status Determination Statement; the small-company exemption does not apply to public bodies. The test looks at control, substitution and mutuality of obligation in the actual working arrangement. You can ask the hirer to review a determination you disagree with, and it must respond within 45 days.

How long does a review take?

Timing depends on the scope of the work, completeness of your records and any information needed from HMRC, NHS Pensions or your previous accountant. We confirm the documents required and agree a realistic timetable before starting. Onboarding is separate from completing the review or filing outstanding returns; neither has a guaranteed turnaround.

Do I need a contract review for every engagement?

NHS contract income, including PCN, ARRS and UDA or orthodontic contract payments, must be accounted for in the period it is earned, with clawbacks provided for. Partners' profit shares and drawings are kept separate. Accurate accounts also drive the pension certificates each partner submits.

What evidence do you need?

We generally require your pension annual allowance statements, self-assessment returns, and business records. For NHS clinicians, total taxable income and pensionable pay details are essential. We also need identification to complete our secure remote onboarding process. Medical.Accountants provides a clear checklist of required documents once you engage our services.

Does IR35 apply to private clinics?

For locum engagements with NHS bodies, the hirer must decide IR35 status and issue a Status Determination Statement; the small-company exemption does not apply to public bodies. The test looks at control, substitution and mutuality of obligation in the actual working arrangement. You can ask the hirer to review a determination you disagree with, and it must respond within 45 days.

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How does IR35 affect my limited company?

For locum engagements with NHS bodies, the hirer must decide IR35 status and issue a Status Determination Statement; the small-company exemption does not apply to public bodies. The test looks at control, substitution and mutuality of obligation in the actual working arrangement. You can ask the hirer to review a determination you disagree with, and it must respond within 45 days.

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How much tax does a locum doctor pay in the UK?

Locum doctors pay income tax on taxable profit at 20%, 40% and 45%, plus Class 4 National Insurance on self-employed profit. Payments on account mean your first bill can include half of next year's tax too. Where income also comes from overseas, residence status and split year treatment decide what the UK taxes.

Should a locum doctor be a sole trader or a limited company?

A limited company can suit locum doctors with substantial private or outside-IR35 income that is not all needed to live on, because profit is taxed at corporation tax rates and can be paid out over time. It brings extra accounts, payroll and filing costs, and NHS employment income cannot move into it. We model sole trader against limited company on your real figures first.

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Is locum work through an agency or trust bank inside IR35?

For locum engagements with NHS bodies, the hirer must decide IR35 status and issue a Status Determination Statement; the small-company exemption does not apply to public bodies. The test looks at control, substitution and mutuality of obligation in the actual working arrangement. You can ask the hirer to review a determination you disagree with, and it must respond within 45 days.

What documents do I need for my return?

You typically require P60s, P11D forms, interest certificates, and records of all business income and expenses. Medical.Accountants provides a tailored checklist based on your specific healthcare role. We will request these details during our onboarding process. Providing comprehensive documentation ensures your tax position is accurately calculated.

What are payments on account?

Payments on account are advance payments towards your next Self Assessment bill, normally due on 31 January and 31 July. Each is usually half the previous year’s relevant Income Tax and Class 4 National Insurance bill, excluding Capital Gains Tax and student loans. Exceptions apply where the bill is below £1,000 or over 80% was collected at source.

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Can I amend a return after filing?

You can generally amend a Self Assessment return within 12 months of the 31 January filing deadline. This allows you to correct errors or include forgotten information. Medical.Accountants can assist in reviewing previous submissions to ensure accuracy. Tax refunds can be claimed for up to four previous tax years.