Limited Company Set-Up for Locum GPs

When is it worth setting up a limited company?

A limited company can suit locum gps 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 Doctors & Healthcare Professionals

How long does company formation take?

Companies House says online incorporation is usually completed within 24 hours, but checks or missing information can cause delays. Directors may need to verify their identity before applying. Incorporation does not complete all banking, tax or professional registrations. Confirm the structure, application requirements and expected timetable before committing to trading dates.

Do I need a business bank account?

A limited company’s money belongs to the company, not its directors. A dedicated company bank account keeps transactions separate and provides a clear accounting trail; check your bank’s terms before trading. A sole trader is not a separate legal entity, but a separate account is often useful for bookkeeping and tax records.

What registrations are needed after incorporating?

Following incorporation, you must register for corporation tax and set up a PAYE scheme for any salaries. You may also need to register for VAT if your taxable turnover exceeds £90,000. Medical.Accountants handles these registrations on your behalf. We ensure your business is correctly set up with HMRC from the outset.

Can I transfer my existing work into a company?

It is often possible to transfer a private practice or locum business into a limited company structure. This process requires careful planning regarding assets, contracts, and tax implications. Medical.Accountants can review your current setup to determine the most appropriate transition strategy. We provide clear guidance on the professional requirements involved.

What are the costs of running a company?

Running a company involves costs such as accountancy fees, insurance, and administrative expenses. You must also account for statutory filing fees and potential employer National Insurance contributions. Medical.Accountants offers fixed fees so you can budget for your compliance costs with certainty. We help you understand all overheads associated with your business.

Should my spouse be a shareholder?

Appointing a spouse as a shareholder can be a tax-efficient strategy for some medical businesses. This may allow for the utilisation of their personal allowance and lower tax bands. However, these arrangements must be commercially justifiable and compliant with tax legislation. We can discuss the implications of shareholding structures for your specific circumstances.

Will a company affect my NHS Pension?

Most NHS doctors and many healthcare staff are members of the NHS Pension Scheme. Contributions are deducted through payroll, and locum or private work can count only through the correct forms. High earners should check the annual allowance each year, as pension growth can trigger a tax charge.

Help with this question: NHS Pension Tax & Annual Allowance for Locum GPs

What are GP locum A and B forms and when are they due?

GP partners report NHS pensionable profit to the scheme each year on a certificate based on the practice accounts; locum GPs use the locum A and B forms to pay contributions on each piece of pensionable work. Late or wrong forms cause missing service and incorrect pension records. We prepare the figures and check them against the accounts before submission.

What is the Type 2 self-employed medical practitioner certificate?

GP partners report NHS pensionable profit to the scheme each year on a certificate based on the practice accounts; locum GPs use the locum A and B forms to pay contributions on each piece of pensionable work. Late or wrong forms cause missing service and incorrect pension records. We prepare the figures and check them against the accounts before submission.

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

How are pensionable earnings calculated for locum GPs?

Most NHS doctors and many healthcare staff are members of the NHS Pension Scheme. Contributions are deducted through payroll, and locum or private work can count only through the correct forms. High earners should check the annual allowance each year, as pension growth can trigger a tax charge.

Help with this question: NHS Pension Tax & Annual Allowance for Locum GPs

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 GPs

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.