starting locums - tax returns,etc

[pharmer7]

I am going into locums hopefully within the next few weeks, and don't even know where to start when to comes to paying tax. I know that I will be classed as self-employed, but don't think I'll earn more than 36k this year, so no need to setup a Ltd company just yet. However, I think that the deadline for tax returns is 31st Jan, so is it better to start working after this date, or...? And even if I do, when will I need to get my next tax return in for. Will an accountant basically spoonfeed me, and just expect a pile of receipts from me, or do I actually need to have a clue what I'm doing
Also, I was working in a family business until now, and may still be working there part-time. Therefore, I am on the payroll there. Will this complicate matters?

[johnep]

All this dealt with on 'how to be a locum' on the forum. Look before you leap into asking a question which has been asked many times before.
johnep

[Pharmanaut]

I'll respond to this one as it deals with 'mixed' PAYE and Self-emp, at least where the main employment is PAYE and self-emp is weekend work.
You will basically fill in two tax forms.
One for your PAYE employment and one for your self-employment.
Your PAYE tax code will be adjusted to re-coup the 'underpaid' tax from the previous year.
Best to have the tax form looked after professionally - some fixed fee servicees advertised on the forum.

Note that this appears to work when your PAYE employment is the significant part of your income.

Good luck.
Make sure you keep records and receipts.
A copy of the latest Stockley interaction book is my best investment as a locum.

[lamzee]

.
A copy of the latest Stockley interaction book is my best investment as a locum.

Is it not a bit heavy to fit in your briefcase?

[johnep]

Even better is that you can claim losses on your self employment against PAYE. I owed some £800 in company car tax. However, had been on trip to Trinidad to visit my export customer and was able to offset this cost against the car tax.
I made a loss for 15 years before retiring from employment. Learnt this from a work friend who wanted a big house and land and bought a chicken farm which ran at a loss. The loss was then claimed against PAYE. Another bought a big house in the New Forest and did B&B. Any losses could be set against PAYE from his employed job as a rep.
johnep

[Pharmanaut]

Even better is that you can claim losses on your self employment against PAYE. I owed some £800 in company car tax. However, had been on trip to Trinidad to visit my export customer and was able to offset this cost against the car tax.
I made a loss for 15 years before retiring from employment. Learnt this from a work friend who wanted a big house and land and bought a chicken farm which ran at a loss. The loss was then claimed against PAYE. Another bought a big house in the New Forest and did B&B. Any losses could be set against PAYE from his employed job as a rep.
johnep

Tell me how to be a locum at a loss?
Its a serious question - need to know!

[johnep]

Simple, I worked every other week on Saturday mornings and did an hour rota two Sundays out of three. I had my cptr,fax,office furniture etc to buy and mileage etc.
My acct was charging me some £500/year and at that time I received £56 for the Saturday morning (was in the 80s). Then there were all the usual allowances for use of the home, phone bills, postage etc. In all, my income from locums was around £1,250 a year and my expenses usually exceeded that, the difference was then deducted from my PAYE.
You cannot make a loss on locum work unless you have other income on which you pay tax. This year my only income will be my pension and perhaps 2-3 export orders, I only need to generate a small loss to allow against tax on the pension.
The first year of locum work following my retirement was the most I have ever earned and I was going to have to pay higher rate. So I purchased an immediate annuity in the amount required to take me below the higher bracket. I got this allowed against tax and immediately was able to take 25% tax free. I receive some £350 a year from this annuity. You could do the same when you reach 65.
johnep

[Pharmanaut]

Thanks,
I'll look into that.
You get fed up of working 3 hours per day for some guy to throw it away on crazy finance policies to fund bankers bonuses.

[pharmer7]

Got a Locum next week but what should I prepare in advance? Do I need the responsible pharmacist notice, and is it sufficient just to print a paper off from the internet? Also, should I leave some sort of invoice or something to remind them of what to pay or something? I got this locum from Coast Locum, and unsure of who exactly controls the finances side of it.

[johnep]

As has been said several times before: READ THE HOW TO BE A LOCUM THREAD.
johnep