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Locum pharmacist Ltd company IR35

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  • Locum pharmacist Ltd company IR35

    Hi Everyone

    I’ve been a superintendent pharmacist for an individual pharmacy for last 5 years. During this time I have always given my invoices through my Ltd company to the pharmacy owner. I have locumed in other places as well, not a lot though.

    last week I had a call from my accountant mentioning changes in IR35 since April 2018 in the public sector (hospitals, CCGs etc) which made me to think.
    He mentioned to me this process can be risky and as a result wants to increase his fees to £1200 per annum. In summary I think he wants to increase his fees and is trying to use the argument of IR35 to justify his fees. My accounts data are very simple with minor changes every year which shouldn’t take him more than one hour to do everything, as he’s got all data on his software.

    my questions are:

    1) what are the risks invloved in using ltd company to provide invoices and get paid by this way both for me and my accountant? Will affect his accounting license if anything goes wrong? As he used that as argument to increase his fees

    2) what are the normal accounting fees for locum pharmacists providing their services through ltd company?

    3) what is the normal percentage figure for expenses in ratio to total income for a pharmacist using ltd company?


  • #2
    There was a case about IR35 recently, and the judge was very unkind about people using it when they were, effectively, full-time employees. Might be worth having a look round. Got a feeling that the GPhC might have views, too, if they got to know about it.

    Don’t take my word for it, get some proper advice.


    • #3
      Those working for the BBC have found out to their cost. Unfortunately, in catching whales, HMRC also scooping up minnows.



      • #4
        My 2 tablets worth...
        Dodgy situation if you are superintendent and regularly employed.
        If you weren't and you had a regular locum round ensure that there is some element of the work pattern being unpredictable.

        I wonder if the Members of Parliament who are directors of companies (other than registering their interest) have the remuneration on a self-employed basis?
        47 BC : Julius Cesar : Veni Vidi Vici : I came, I saw I conquered.
        2018 AD : Modern Man : I shopped, I clicked, I collected.
        How times change.

        If you find you have read something that has upset or offended you an anyway please unread it at once.


        • #5
          By the sounds of things you're a de facto employee.

          Having yourself as a Ltd company essential means you reduce your tax bill (tax avoidance/evasion) and your employer reduces their national insurance bill (tax avoidance/evasion).

          Unfortunately the judiciary are taking the view that this now sits on the evasion side of the fence and are issuing tax bills accordingly along with hefty fines. I'd say your accountant is looking for extra money as he is professionally bound to report irregularities to HMRC. In reality he should have just advised you to go and do locums elsewhere for a spell and then come back.
          I remember when a blog was an individual boot.


          • #6
            No additional risk to the accountant whatsoever. It's you who signs your account to say they are correct before they are sent to Companies House/HMRC. Your employers for the Superintendent role are also at risk.


            • #7
              HMRC are gunning for the self employed. They lost out on car mileage allowance, but are looking to sweep more self employed into revenue. The BBC case has whetted their appetite. Always ensure you work for at least two different companies and can choose when you work. Being a superintendent could be taken as working for one company.