Actual salary of locums and tax questions!!

[christina]

hi guys,

i am getting married next year and have just settled down with a mortgage for my first house, so i'm in desperate need of a higher salary! i am in the process of handing in my resignation to my full-time sainsburys pharmacy. i just want to ask what the actual salary is for a locum pharmacist after all tax deductions if you were to set up your own limited company? i understand obviously this varies with the rates of pay and the number of hours u work a week, but generally speaking say you were to take in £45k or £50k inc. tax, what would be the rough amount you would end up with after paying tax (taking into account of all taxable deductions eg. car costs, stationary etc...)?

am i asking the question right i really need some help in all these tax queries! many many many thanks in advance!!

[Pharmanaut]

Originally Posted by christina

hi guys,

i am getting married next year and have just settled down with a mortgage for my first house, so i'm in desperate need of a higher salary! i am in the process of handing in my resignation to my full-time sainsburys pharmacy. i just want to ask what the actual salary is for a locum pharmacist after all tax deductions if you were to set up your own limited company? i understand obviously this varies with the rates of pay and the number of hours u work a week, but generally speaking say you were to take in £45k or £50k inc. tax, what would be the rough amount you would end up with after paying tax (taking into account of all taxable deductions eg. car costs, stationary etc...)?

am i asking the question right i really need some help in all these tax queries! many many many thanks in advance!!

Alternatively...
Are there any local jobs on your doorstep.
Minimum commuting will give you more time and cut fuel costs.
It really is nice to be home earlier, especially winter evenings!
Some of the smaller friendlier chains have stopped advertising because of minimum response. They could be waiting for your call.

Locums should work for a variety of employers. You will pay reduced NI contributions but you will be responsible for your tax, which is paid in arrears in 6 monthly chunks. You have to put money aside for this - so don't blow it all or borrow it to pay a big bill or a holiday! You can make use of ISAs if you haven't got these already to save your tax money. (use husbands allowance if he isn't using it) You can claim for mileage, car, laundry of overalls. Might even manage a laptop and internet access. Usually you get a proportion that you can write off against tax. If you know a self-employed locum ask them who they use for accountancy and go and have a chat. You will of course have to pay the accountant but that can be offset against tax.

[the old merlin]

Good reply, Pharmanaut. Christina, as Pharmanaut says, look around locally.

And, you are a pharmacist, with a wide variety of skills. See what else is available other than "just" locumming. Are the PCT looking for sessional practice pharmacists? £25 or so per hour. Commercial practice advisory firms exist, and advertise in the PJ. Don't know what they pay. Look in the C&D as well as the PJ. Often "odd" self employed type jobs there.

And, you have got the MUR certificate, haven't you?

Best of luck.

[pluk]

Originally Posted by christina

hi guys,

i am getting married next year and have just settled down with a mortgage for my first house, so i'm in desperate need of a higher salary! i am in the process of handing in my resignation to my full-time sainsburys pharmacy. i just want to ask what the actual salary is for a locum pharmacist after all tax deductions if you were to set up your own limited company? i understand obviously this varies with the rates of pay and the number of hours u work a week, but generally speaking say you were to take in £45k or £50k inc. tax, what would be the rough amount you would end up with after paying tax (taking into account of all taxable deductions eg. car costs, stationary etc...)?

am i asking the question right i really need some help in all these tax queries! many many many thanks in advance!!

The Old Merlin,

The advice always used to be to save between 20% and 30% of your earnings to pay tax although the amount you need to pay to the taxman varies over the years. In the first year you can claim set up costs for your business which can be written off against tax etc. Rather than ask one of us non-qualified financial advisor's I'd always ask an expert. TaxAssist specialise in advising small businesses which is in effect what you are as a locum and will agree a fixed fee for your accounting which can be spread over 12 months. This is much better than a big bill at the end of the year. Tax Assist have over 175 offices across the UK and you can find your nearest by calling 0845 0099990

[johnep]

Or there is Modi who specialise in locums. If you become Ltd company can pay yourself minimum wage and take rest in dividends which are taxed at 19%.
johnep

[Hello]

I am not registered as a limited company, I just operate as a sole trader. My quetion is can you offset a proportion of your mortgage, electricity, gas, phone etc against tax as your home is effectively your office ie this is where you pick up bookings, do the books etc?

Any info appreciated.

[johnep]

There is a set allowance for use of home. Be careful not to say have allocated dedicated office or you will be liable for capital gains tax on sale.

I have always used an accountant as enables me to sleep at night. sage is used to keep accounts and then converted in to Excel format as required by the act. I use Modi who advertise in PJ.
johnep

[Pharmanaut]

Originally Posted by Hello

I am not registered as a limited company, I just operate as a sole trader. My quetion is can you offset a proportion of your mortgage, electricity, gas, phone etc against tax as your home is effectively your office ie this is where you pick up bookings, do the books etc?

Any info appreciated.

Careful about your home - you might also be liable for business rates.

[Raju]

Originally Posted by johnep

Or there is Modi who specialise in locums. If you become Ltd company can pay yourself minimum wage and take rest in dividends which are taxed at 19%.
johnep

Dividends are taxed at 10% for a basic rate taxpayer.

It's corporation tax which is 19%, which are excess profits of your Ltd company, only payable over £10k.

[lamzee]

If you are a ltd company, does that mean you have to be VAT registered. If so, do you find it hard to get multiples eg LLoyds, Boots, Rowlands to pay the VAT, with their set rates etc?