occasional locum

[typhoon]

good evening everybody,
I am an employee pharmacist and I would like to do some occasional saturdays as locum, I wonder how will I be paid? I mean will the company pay me the gross pay so I will need to make my own declaration at the end of the year or will they pay me as an employee, detucting taxes?

thanks

[admin]

Hi and welcome

They will probably pay you as a self employed person, so you'll have to get your own accounts, tax etc done. I know a very good accountant if you need one.

[johnep]

I did this for many years. Open a business account with ,say, nationwide who will pay you interest rather than charge you as the big banks do.
I made a 'loss' for many years and was able to set this against paye.
On retirement just carried on and started making a profit.
johnep

[typhoon]

Originally Posted by johnep

I did this for many years. Open a business account with ,say, nationwide who will pay you interest rather than charge you as the big banks do.
I made a 'loss' for many years and was able to set this against paye.
On retirement just carried on and started making a profit.
johnep

I am lost :-)
so the company will pay me as self-employed, I need to save around 25% in order to pay the taxes at the end of the year, better in a good bank account.
at this point the question is how to pay taxes... can I ask to my employer to add them to my PAYE or will I need to produce some documents at the end of the year?
I read on the HM website that under £2500 I probably don't need to produce a self assessment form but it is not very clear.
which procedure do you follow?
thanks

Marco

[JonF]

If its just the odd locum, do what most people would do and don't declare it, especially if paid in cash!!!!

[typhoon]

Originally Posted by JonF

If its just the odd locum, do what most people would do and don't declare it, especially if paid in cash!!!!

the problem is that my payment will be put through their payroll...so everything will probably be registered.

[SolomonQ]

I wouldnt advise same as John as it's not legal but doesnt matter if it's though their payroll, no one will check unless they have reason to check.

most likely you'll be earning above the 40% tax threshold, so tecnically if you pay the tax for this occasonal locum, you will only be getting £15 an hour (based on £25 per hr), is that worth it???

[typhoon]

Originally Posted by SolomonQ

I wouldnt advise same as John as it's not legal but doesnt matter if it's though their payroll, no one will check unless they have reason to check.

most likely you'll be earning above the 40% tax threshold, so tecnically if you pay the tax for this occasonal locum, you will only be getting £15 an hour (based on £25 per hr), is that worth it???

considering that is occasional I won't be anyway over £40000 considering my employed work so i should pay 23% in taxes, in this case it is still worthing. So we can return in the legal way, how do I have to declare this income? in the PAYE or an additional form?

[Jeff]

Originally Posted by typhoon

good evening everybody,
I am an employee pharmacist and I would like to do some occasional saturdays as locum, I wonder how will I be paid? I mean will the company pay me the gross pay so I will need to make my own declaration at the end of the year or will they pay me as an employee, detucting taxes?

thanks

If you're thinking of locumming for the company that you already work for they'll pay you as an employee.
If you are thinking of locumming elsewhere - check that your current contract of employment allows it - then do you best to be paid as self employed and go for the tax breaks that come with it - but see a real accountant for proper advice.

Jeff

[JonF]

Originally Posted by SolomonQ

I wouldnt advise same as John as it's not legal

About as legal as taking the odd Co-codamol 30/500 from the pharmacy where you're working- see 'these hours are killing me' thread-post 33'