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]

Re: Actual salary of locums and tax questions!!

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]

Re: Actual salary of locums and tax questions!!

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.

[johnep]

Re: Actual salary of locums and tax questions!!

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]

Re: Actual salary of locums and tax questions!!

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]

Re: Actual salary of locums and tax questions!!

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]

Re: Actual salary of locums and tax questions!!

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]

Re: Actual salary of locums and tax questions!!

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]

Re: Actual salary of locums and tax questions!!

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?

[Raju]

Re: Actual salary of locums and tax questions!!

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?

From what I understand (I'm no expert):

You only have to be VAT registered if the company's turnover exceeds £64k. From next tax year it will be £67K. Note, this does not apply only to Ltd companies but also to locums who operate as sole traders.

So if you are a locum who is lucky and hardworking enough to be possibly earning in excess of £64k cut back the hours a little and chill out.

[lamzee]

Re: Actual salary of locums and tax questions!!

I won't be hitting anywhere near 64k! Thanks for the info though.

[Tony Schofield]

Re: Actual salary of locums and tax questions!!

Also, if you were charging VAT, VAT registered companies can claim it back.

[lamzee]

Re: Actual salary of locums and tax questions!!

I know that part, I am just not convinced that multiples would pay it in the first place to the locum, since they have rigid payment procedures etc.

[wwjd_andy]

Re: Actual salary of locums and tax questions!!

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.

Dividends are taxed at 10% for anything below the higher rate (approx £40 000 ), however whilst in the basic rate, you do not pay dividend tax.

Golden Brown has made this complicated though: the dividends are "grossed up" by 10% (multiply by 10/9) and then 10% is taken off them (x9/10).. so paying a dividend of £10.00 per share on the 100 ordinary shares of £1.00 is as follows:

Shareholding Tax Credit Dividend Payable
100 £111.11 £1000.00

Regards

wwjd_andy

[wwjd_andy]

Re: Actual salary of locums and tax questions!!

PS sorry for posting out of sync - that was my first post and I thought it was an important point