Mortgage References & SA302s for Locum Doctors

What do lenders need from a self-employed clinician?

Employment status depends on the real working relationship: who controls the work, whether you can send a substitute, whether you carry financial risk and how integrated you are. A contract label alone does not decide it. HMRC's Check Employment Status for Tax tool and case law set the tests, and getting it wrong can leave the engager owing PAYE.

What is an SA302?

An SA302 is an official tax calculation summary issued by HMRC for a specific tax year. It confirms your total income and tax liability for that period. Mortgage lenders frequently require this document to verify a medical professional's earnings. We provide these summaries to our clients once their tax returns are filed.

What is a tax year overview?

A tax year overview is an HMRC document that acts as a statement of your tax account. It verifies the amount of tax you owed and the payments you actually made. Lenders use this alongside the SA302 to confirm that your self-declared income matches HMRC records. This ensures your tax status is current.

What is an accountant's certificate?

An accountant's certificate is a formal statement signed by a qualified professional confirming your financial position and earnings. Lenders often request this when doctors or dentists apply for mortgages. Medical.Accountants provides these certificates for our regular clients based on verified financial data. We ensure the documentation meets specific lender requirements.

Help with this question: Payroll & Pensions for Doctors & Healthcare Professionals

How many years of accounts do lenders need?

Lenders typically require two to three years of certified accounts or tax returns to verify stable income. Some specialist lenders may consider healthcare professionals with only one year of trading history. Medical.Accountants prepares these financial statements to support your applications. Consistent accounting records improve your chances of securing competitive mortgage rates.

Can locums get a mortgage in their first year?

Locum doctors can often obtain mortgages in their first year through specialist lenders who understand medical career paths. These lenders may assess your income based on your contract rate rather than historic accounts. Medical.Accountants can help by providing the necessary financial projections and documentation. Eligibility depends on your professional history and contract terms.

How quickly can you provide documents?

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 lenders accept limited company income?

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.

Help with this question: Limited Company Accounts & Corporation Tax for Locum Doctors

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.

Help with this question: Limited Company Accounts & Corporation Tax for Locum Doctors

Help with this question: Self Assessment Tax Returns for Locum Doctors

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.

Help with this question: IR35 Reviews for Locum Doctors

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.

Help with this question: Self Assessment Tax Returns for Locum Doctors

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.