Limited company
More and more practices are becoming reluctant to employ locums who are self-employed. The reason for this is that if the Receiver of revenue and tax offices experience problems claiming the appropriate amount of tax from the locum, they will claim what is owed to them directly from the practice that employed that locum. Practices are therefore more inclined to accept locums who are registered as limited companys.
From a tax perspective, limited companies can be more beneficial than being self-employed:
An example:
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A saving of £2,962!
The cost for setting up a limited company will vary according to which accountant you use. . Roughly it will cost about about 2 days worth of locumming ,approx.£100-200 exc. VAT, and then a yearly accountancy fee which is variable between accountants. This will vary according to the level of services and expertise they may offer- some accountants have specific experience in dealing with veterinary locums.Yearly fees can range roughly between £800-£1500 per year exc. Vat.
Considering the savings in tax and hassle, this may be worthwhile!
The above is meant as a general overview only.For professional advice on Limited Companies, it is strongly advised that you contact a recognised accountancy firm, your local Tax Office or local IR Enquiry Centre.
For information regarding VAT and NI contributions it is advised you discuss these matters with an accountant.
