GP locum Self Assessment and expenses UK

The GP locum money model

A GP locum's income rarely arrives like a normal salary. You may invoice practices directly, receive statements through a locum chambers, work through an agency, do out-of-hours shifts, mix salaried and locum work, or have short periods between jobs. The bank account may show net amounts after chambers fees, or late payments that relate to earlier sessions.

That timing matters. Self Assessment follows tax years, and pension or superannuation records may need figures that match specific work. Mileage records also need care. A diary entry saying "clinic day" is weaker than a mileage log showing date, practice, postcode, purpose and miles. Professional costs need the same discipline: GMC, indemnity, appraisal, CPD, subscriptions, phone, laptop, medical bag and equipment should be recorded with receipts and business-use notes.

Competitor pages often list generic expenses, but GP locums need something more practical: a way to reconcile sessions, invoices, chambers statements, mileage and pension paperwork. That is where a good accountant should add value.

Examples where GP locums get stuck

• A locum does Monday sessions at one practice and ad hoc out-of-hours shifts. The income needs to be split by source and tax year.
• A chambers statement deducts fees before payout. The accountant may need gross session income and chambers costs, not only bank receipts.
• A salaried GP does weekend locum sessions. PAYE salary and self-employed income should be kept separate.
• A locum has pensionable and non-pensionable work. Pension records need to be checked against the current NHSBSA process.
• A doctor starts locuming after leaving a partnership. The opening position, overlap with old partnership income and pension records need care.

Common mistakes

The first mistake is using bank deposits as the only income record. If chambers fees or agency deductions are taken before payment, the accountant may need the gross income and fee separately. The second mistake is treating all medical income the same. Salaried GP income, self-employed locum sessions, private reports and out-of-hours work can have different records and reporting routes.

The third mistake is leaving mileage and pension records to memory. GP locums often work at multiple locations, so a contemporaneous log is much stronger than a year-end estimate. The fourth mistake is assuming every expense is automatically allowable because it is medical. The accountant still needs the business purpose and evidence.

When to speak to an accountant

Speak to an accountant if you have mixed PAYE and locum income, chambers fees, pensionable and non-pensionable work, high earnings, annual allowance concerns, old unreported locum income, or uncertainty over whether you are self-employed or employed for a specific engagement. Ask early if deadlines or NHS pension forms are involved.

A monthly workflow for GP locums

At month end, create a simple session summary before receipts and diary entries scatter. List each session date, practice, hours, fee, invoice number, payment date and whether the work is pensionable. Then add mileage for each journey and attach the supporting invoice, chambers statement or agency statement. If you work through a chambers, keep the statement even when the bank receipt looks simple, because the statement may show deductions that need to be treated separately.

Expenses should be added at the same time. GMC, indemnity, appraisal, CPD and subscriptions are easier to support when receipts are saved in the month they are paid. Equipment and IT costs should include a note of business use, especially where an item also has private use. A monthly workflow also helps if an accountant asks for figures before a pension or Self Assessment deadline.

What should be included in the accountant's scope?

Ask whether the fee includes bookkeeping cleanup, Self Assessment, payments-on-account estimates, pensionable-income record checks, PAYE pages, capital allowances on equipment, and review of old unreported income. A cheap tax-return-only service may be enough for a very tidy locum, but it may not be enough where pension records, chambers statements and mixed employment are involved.

Questions to ask a GP locum accountant

• How do you want me to split sessional income by practice, chambers and agency?
• Do you need gross chambers income as well as net bank deposits?
• Which expenses do you commonly see challenged for GP locums?
• What pension or superannuation records do you need from me?
• Can you handle PAYE and self-employed locum income in the same return?
• What should I update monthly so the tax return is not rebuilt from memory?

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