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  • Tax

    Hi all!

    I've just left boots and became a locum. I'm not sure what to do regarding the inland revenue and national insurance, could you help me?

    1.Should I do the self-assesment by myself or should I get an accountant?

    2.How do I get a good accountant, is there a list of reputable accountants that I could choose from?

    3.And what about national insurance contributions, how do I do that?

    4. What receipts should I keep?

    Thanks a lot in advance for your replies. I really do need advice.

  • #2
    Modi advertise every week in the PJ. They specialise in locums.
    1) Must have separate business account. Banks will charge you loads, Nationwide Business Account pays YOU interest.

    2) Buy Sage instant accts to keep track of paperwork.

    johnep

    Comment


    • #3
      Thanks!

      Sage acct? What does it mean?

      Comment


      • #4
        Sage is acctcy software co. look at www.sage.co.uk.

        I have used their system for 10 years, mainly because of the invoicing function.

        otherwise Modi will provide you with a simple Excel template.

        johnep

        Comment


        • #5
          You need to declare yourself as self-employed with your local tax office.

          You'll have to do that within 2 months I believe.

          Tax is easy if you keep good records, and you'll need to even if you get an accountant. You can claim a lot of benefits from the tax man, particularly if you incorporate and become VAT registered. That means you can claim VAT back on purchases you make for your business.

          You can claim for transport, clothing allowance, part of your household costs if you have a home office, among other things.

          As regards to bank accounts, I think johnep has given you good advice there, it can get very complicated if you only have a personal account.

          We have used sageline 50 for years too, very good package. It has gone up in price this year though! I've also used quickbooks and mybusiness-basics which do the same job but are a little bit basic (as the name suggests).

          Good luck!
          _____

          Comment


          • #6
            tax

            With regard to Bank accts, I was first with the Natwest. Then I had bank charges of £169 so joined Nationwide Business Investors act where they pay You interest.

            It is important that your figures match the bank statement. I have three main divisions.
            Cash expenses : car parks, subsistance(lunch), telephone bills, car expenses etc.keep all receipts.

            Bank payments: your drawings, RPSGB fee, insurance, cptr equipment etc
            Ensure cheque stubs are correctly filled in.

            Bank receipts: lloyds, moss, Sdrug pay you by BACS. Cash receipts should also be put into this, not into your personal acct. Use a paying in book to keep track.

            Sage enables a different ref number for each type of expense enabling you to pull figures out very easily.

            Pay the help fee for the first two years, after that you should be OK.

            johnep

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            • #7
              I've registered as self-employed and went on a workshop about being self-employed by the inland revenue. I was very disappointed. I can only claim 40p per mile for the car, or use the method of actual cost (that seems very difficult for me), stationary, PDA insurance, RPSGB fees, accountant fees, books and publications.

              The locum that I worked with on friday told me that I should become a limited company. And he's not the first one. But I'm afraid that it might be very difficult. I really need advice here. Is it the best thing to do? I'm grateful for everyone's opinion.

              Thank you very much in advance.

              Comment


              • #8
                Re: Tax

                Contact Modi. If doing full time, you could be paying tax at 40%. Become Ltd company, pay yourself minimum wage and draw rest as dividends, taxed at 19%.

                Because your accountancy fees will treble, only worth doing if working full time.

                If you register for VAT, the any bills you pay on behalf of business can claim back 17 1/2% VAT. Quite a sum if you buy a cptr, PDA, pay accountancy fees etc. Thsi is why you should contact Modi who specialise in locum accts.
                johnep

                Comment


                • #9
                  Re: Tax

                  Pharmacy Salaries

                  Visit here to how life is over the pond.
                  johnep

                  Comment


                  • #10
                    Re: Tax

                    Originally posted by richtagg View Post
                    You need to declare yourself as self-employed with your local tax office.

                    You'll have to do that within 2 months I believe.

                    Tax is easy if you keep good records, and you'll need to even if you get an accountant. You can claim a lot of benefits from the tax man, particularly if you incorporate and become VAT registered. That means you can claim VAT back on purchases you make for your business.

                    You can claim for transport, clothing allowance, part of your household costs if you have a home office, among other things.

                    As regards to bank accounts, I think johnep has given you good advice there, it can get very complicated if you only have a personal account.

                    We have used sageline 50 for years too, very good package. It has gone up in price this year though! I've also used quickbooks and mybusiness-basics which do the same job but are a little bit basic (as the name suggests).

                    Good luck!


                    and where do you find info about what you can deduct from the tax? IR people were not very helpful. is it some kind of secret knowledge reserved only for accountants?

                    Comment


                    • #11
                      Re: Tax

                      Originally posted by monika View Post
                      and where do you find info about what you can deduct from the tax? IR people were not very helpful. is it some kind of secret knowledge reserved only for accountants?
                      Anything that is used wholly or partially for work.
                      You need to get there. Car, fuel, service costs, insurance, Sat Nav.
                      You need a phone (and mobile) to take bookings
                      You need a computer (for CPD, invoices etc) and printer and paper etc.
                      If you can use it for work keep the receipt and show it to your accountant.
                      Jeff

                      Comment


                      • #12
                        Re: Tax

                        Originally posted by silnarnin View Post
                        I've registered as self-employed and went on a workshop about being self-employed by the inland revenue. I was very disappointed. I can only claim 40p per mile for the car, or use the method of actual cost (that seems very difficult for me), stationary, PDA insurance, RPSGB fees, accountant fees, books and publications.

                        The locum that I worked with on friday told me that I should become a limited company. And he's not the first one. But I'm afraid that it might be very difficult. I really need advice here. Is it the best thing to do? I'm grateful for everyone's opinion.

                        Thank you very much in advance.
                        I admit I do everything through my accountant, but he set me up as a Ltd company, tells me what to claim for etc. He even sent me a spread sheet to record the relevant things and keep myself up to date.

                        I used to do it all myself, but although paying an accountant costs money, I have found it saves you money in the long run.

                        To set up a company you need to register with Companies House, submit a set of your accounts yearly to them - all done by him.

                        Then there the different types of tax (PAYE, corporate tax) and NI contributions etc. All in all, I'd recommend a good accountant as it makes life so much easier.

                        I personally use a guy who is also a qualified lawyer, and that comes in very handy sometimes, as he will usually give me a bit of free advice if I need it. I found him as he specialises in pharmacists, and does the accounts for the locum agency I also use.
                        Lively debate is encouraged but please respect the opinions and feelings of others.
                        Please help keep the forum vibrant by spreading the work to friends and colleagues via word of mouth or social media.
                        Thank you for contributing to this site.

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                        • #13
                          Re: Tax

                          Hi,

                          I've recently started locuming and am also confused about whether I should register as a limited company rather than self-employed which I am now. I'm unsure about VAT registration. I gather being VAT registered means I have to charge VAT on my services (as well as being able to claim it back on work related materials). So would I have to increase my hourly rate by 17.5% and are pharmacies okay with that? I know they can claim it back but is that the way it works or have I got it wrong?

                          Also I get paid cash in hand at ASDA pharmacies. I keep all receipts however I have used some of the money before I have paid it into my account. So less is going in on the statement than I have earned but I thought the receipts would be acceptable proof of what I have earned and so it's all okay. Or do you think that's bad.

                          Any helpful advice would be appreciated.

                          Thank you

                          Comment


                          • #14
                            Re: Tax

                            Tax on earnings roughly 22%, tax on dividends is 19% so worthwhile becoming ltd co if work full time. Re cash from sainsburys etc. they will be reporting that they have paid yo so pau in equibalent amount to your business acct. I suggest Nationwide as get paid interest while major banks will charge you.
                            johnep

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