tax for locum pharmacists

[ash19feen]

Hi
I have recenly started locuming. Could someone advise me on how to
manage my tax? I haven got any idea of how the procedure is. Is tax paid once a year? or can I pay it in installments or as i earn? how can i calculate my tax?
I dont really ant to hire an accountant coz i think its too early for that
Thank you

[Zoggite]

IT IS NEVER TOO EARLY TO HIRE AN ACCOUNTANT!!!!!
Besides, they often end up saving you more money in tax savings than they actually cost to hire, their expert knowledge is definitely worth having.
First step: your local tax office, get some leaflets, they'll explain the basics. Yes, tax is paid yearly, about six months after the end of the tax year; so the income tax due for what you're earning now (and until april 1st 2007) will only be due on or around october 1st 2007. I wouldn't recommend paying as you earn because you can't really be sure how much you really are going to earn in advance, and why should you lend the Crown money in advance, interest-free? do you volunteer to pay your electricity in advance, too?!? No, I didn't think so!

[johnep]

tax

When I started self employment in addition to paye, I contacted an acct and he advised me to start my tax year in May. This means I actually pay tax about 18 months after earnings. In the meantime keep back say 25% of pay and put it in premium bonds.
I have recently changed to a specialist locum acct, adverts in PJ and C&D and apparently, this year I am due a refund. If you work full time as a locum, then becoma a ltd company and pay yourself miniumum wage, but take out dividends which attract less tax. Not worth the hassle if only part time.

johnep

[admin]

Hi all

I am very happy with my accountant, and he specialises in tax saving measures. He is also a qualified lawyer, which comes in handy!

If anyone wants his details just contact me.