![]() ![]() ![]() You will need to submit a Form A and B for your pension contributions. Remember you can’t pension income paid from an agency or for any private work, however. The form was revised in April 2018 so make sure that you use the new one for work undertaken since that date, and the old one for any work prior to 1 April 2018. You can use your locum income to pay into the NHS pension. Some software platforms offer free financial advice and help with finding a good accountant. Ask for recommendations from colleagues and experienced GPs. You should look for someone who is not only professionally qualified but also experienced in dealing with doctors and the complexities of the NHS pension scheme. Consider if the time used might be better spent practicing medicine and using the money earned to pay a (tax deductible) adviser. Penalties for ‘careless’ returns are expensive. If you want to do it yourself, be prepared to spend a lot of time researching to make sure that you don’t accidentally get something wrong. If you’re worried about whether you are going to get it right, meet deadlines, comply with all your obligations as a self-employed person, then you need a professional adviser. There can be a scarily large figure waiting for you at the end of this period if you haven’t been saving. However, in the first year of starting you’re not required to make any payments (unless you previously submitted tax returns). The deadlines are 31 January and 31 July, although you actually pay three instalments of tax for a tax year. The usual recommendation is to put at least one third of your income away for tax. Practices will pay you gross of tax and it’s your responsibility to ‘save’ a proportion of your fees to pay your tax bill when it arrives. Don’t be late – the fine is £100 plus additional daily charges. The deadline for submission is always 31 January following the tax year end. You need to complete a tax return each year and the tax year always runs from 6 April to 5 April. ![]() Register with HMRC for self-employment and Class 2 National Insurance as soon as you start as a locum. You don’t need to send it anywhere unless you obtain other employment, but you will need it for your tax return – so keep it safe. If you’ve been employed then make sure you get your P45 from your employer. This way you’ll obtain a more holistic approach to your finances. Look out for platforms where you can record any income source such as income from rental property or income from teaching. You may also want to consider using a spreadsheet or a GP locum software system to streamline your record keeping. You may find it easier to just use one credit card for business expenses so that you don’t have to spend time ‘weeding out’ personal expenditure. HMRC may want to look into your accounts, so be prepared to justify and provide evidence for the rationale behind your costs, especially when there are both business and personal costs involved. You should also keep copies of your A and B forms as you will claim tax relief on your pension contributions. This means all expenses with invoices and receipts. Keep on top of all your records and keep hold of them for seven years. Here’s a brief summary of the most important first things to consider when starting your new locum life: See our articles How to Make a Budget and 5 Basic Budgeting Tips if you are just getting started or new to budgeting.Getting organised will help you avoid needless penalties for missing deadlines or making errors. The help worksheet is much more detailed now. Percentages below the category totals show you what percent of the total family budget is going to that category. New in Version 2.0: The new graphs show your spending and savings balance over time. If you are moving or buying a home, you can analyze your budget to see where you may need to cut back to be able to afford an increase in rent or a higher mortgage. For example, if you are changing jobs, you can use the planner to estimate whether the increase (or decrease) in pay will still allow you to make ends meet. ![]() This free family budget planner worksheet will help you create a yearly budget by entering amounts based on the month in which expenses are incurred.īy creating a yearly budget, you can more easily predict how major life changes will affect your finances. ![]()
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