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Do I have to set up a Ltd. to do locum work?

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  • Do I have to set up a Ltd. to do locum work?

    Currently I work at Boots as an employee. I am willing to do some extra work on my free days. Do I have to set up a limited company to take up offers such as on this site?


    What would be the best choice for me in terms of tax issues and maximising my yearly net income?
    Last edited by admin; 22, June 2008, 10:04 PM. Reason: Link deleted due to advertising

  • #2
    Re: Do I have to set up a Ltd. to do locum work?

    No. Trade as sole trader and keep accts separate, I did precisely this for best part of 20 years. For many years made a 'loss' on sole trader activities and was able to set this against PAYE.
    johnep

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    • #3
      Re: Do I have to set up a Ltd. to do locum work?

      Originally posted by johnep View Post
      No. Trade as sole trader and keep accts separate, I did precisely this for best part of 20 years. For many years made a 'loss' on sole trader activities and was able to set this against PAYE.
      johnep
      John,

      Could you explain how to make "a loss".
      Need all the info I can get.
      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.

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      • #4
        Re: Do I have to set up a Ltd. to do locum work?

        Simply that you can charge business mileage, expenses, phone , stnry, computer, etc against tax and sometimes this will exceed income from the locums. In my case I was working every other Saturday morning and Sunday rota for an hour two Sundays out of three. I also had a small export business and was able to charge my costs of a trip to Trinidad and Tobago to visit my customer. Nicely balanced a charge for company car.

        Initially learnt about this from a colleague at work who wanted a large house and found one with a chicken farm attached. Told me never made a profit from the chickens but in the meantime was able to live in a good style and enjoy a hobby.

        We once stayed B&B at a large house in New Forest owned by ICI paint rep who said the B&B enabled him to live in a house which even then was earning more than he did.

        In my first year of proper locum work after retirement, I made far too much profit and was in danger of paying higher rate tax. I therefore purchased an annuity pension and immediately had cost of this allowed against tax, also then had 25% back tax free. Mind you, this was at the cost of having an accountant who charged nearly £500. Some years my turnover was only a couple of thousand. The first years were really a hobby and learning experience.

        Had I got the knowledge and experience of business that I have now, then I could have been like our friend from Tyneside.

        Johnep

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