Last reviewed: 8 August 2026
Quick summary
- Keep salary payslips, P60 and NHS pension evidence separate from invoices or payment statements for locum work.
- NHSBSA says freelance GP locum work cannot be pensioned through a limited company. Do not let a company payment or a pension form stand in for the other record.
- PCSE says a Type 2 process includes salaried and relevant locum or solo income for pension records. It does not replace HMRC or company records.
Part of GP and dentist accounting guides.
Direct answer
Use three folders from the first session. Folder one is your salaried role: contract, monthly payslips, P60, pension payslips and any expenses evidence relevant to that employment. Folder two is individual freelance locum work: engagement terms, session invoices, payment remittances, Locum A and B evidence where relevant, and an individual session log. Folder three is limited-company activity: company invoices, client contracts, company bank receipts, expenses, payroll records, director decisions and corporation-tax/accounting records.
This prevents a common failure: adding every GP-related payment into one spreadsheet and then trying to work out at year end which income was paid through PAYE, earned as an individual or invoiced by a company. The tax, pension and reporting consequences can differ. The first job is accurate classification from the actual contract and payment route, not chasing an assumed best structure.
NHSBSA says that GP locum work cannot be pensioned through a limited company. Its locum guidance says the relevant Locum A and B process has a 10-week deadline after work is completed. PCSE says a Type 2 self assessment is intended to make sure pension contributions are allocated correctly and must include relevant salary and locum/solo information. These are operational deadlines and records to discuss promptly with a medical accountant or pensions specialist.
The three-lane monthly control
1. Salaried GP lane
Match each payslip to the practice payroll and retain the year-end P60. Keep pension deductions and employer information visible. A locum payment should not be filed here merely because it came from an NHS practice.
2. Individual locum lane
For each session, retain date, practice, work description, agreed rate, invoice or remittance, payment date, deductions, mileage/expense evidence and pension paperwork where it applies. Keep copies of Locum A and B forms and the practice correspondence. A session log is more reliable than trying to identify work later from a bank reference.
3. Limited-company lane
Record the company client, contract, invoice, payment, expense and bank receipt. Keep company cash separate from personal cash. Payroll and dividends, if any, need their own evidence; do not treat a company bank receipt as personal income merely because you control the company.
Finish each month with a one-page summary: salary received; individual locum sessions and receipts; company sales and receipts; pension forms due or submitted; and anything not yet allocated. This is a control sheet, not a tax calculation.
Keep the three totals visible rather than netting them together. That makes it much easier to spot a practice payment that has been paid through payroll, a locum session still awaiting payment, or a company invoice that has been paid into the wrong account.
Why entity choice is not a one-line decision
A limited company is not a universal answer for GP work. The engagement terms, employment-status position, cash needs, administration, professional costs, pension objectives and type of work all matter. Likewise, being paid through an agency, umbrella or payroll arrangement can change what records you receive and what should be checked. Keep the contractual documents rather than relying on a colleague's structure.
IR35 and status questions are fact-specific. Do not use this guide to decide them. Give an accountant the engagement, substitution/control information, payment route and any agency documents so the advice starts from evidence rather than a rate comparison.
Three GP scenarios
- Seven-session salaried GP plus occasional individual locums: salary payslips/P60 go in one folder. Each Saturday locum has an invoice, payment and any relevant pension form in the second. The accountant can see the relationship without guessing from bank credits.
- Salaried GP plus private work through a company: the practice salary stays PAYE. Private client invoices, company expenses and company bank receipts stay in the company lane. Any money withdrawn from the company is evidenced separately.
- GP changing roles mid-year: the transition date, final salary evidence, new engagement terms and pension process are kept in a chronology. PCSE notes that a salaried-to-partner change can involve different end-of-year pension forms, so timing evidence matters.
Records to gather
- Employment contract, payslips, P60, pension documents and employment-expense evidence.
- Locum contracts, session diary, invoices/remittances, payment proof, Locum A/B copies and practice correspondence.
- Company incorporation details, contracts, invoices, bank statements, expenses, payroll and dividend records.
- Type 2/other pension documentation and the actual role dates it covers.
- Agency or umbrella documents, deductions and status communications where used.
Common mistakes
Do not put a company invoice into a personal locum total. Do not assume all locum sessions have the same pension route. Do not wait until year end to discover missing Locum A/B evidence. Do not rely on an accountant to infer the status of a bank payment without the engagement and invoice.
Questions for a medical accountant
- Which of my engagements are employment, individual locum work or company activity on the evidence?
- What pension actions and deadlines apply to each relevant locum or salaried period?
- What documents should reconcile my Type 2 process with tax and company records?
- Does any engagement create a status or off-payroll issue that needs specialist review?
- What monthly routine will let me produce pension, tax and company records without duplicate totals?
Useful related guides
Key takeaway
A GP's records get manageable when the payment route decides the folder. Keep salary, individual locum and company evidence distinct, then let a medical accountant connect the relevant pension and tax processes from that clean evidence.
Sources checked on 8 August 2026
Frequently asked questions
Can freelance GP locum income be pensioned through a limited company?
NHSBSA says GP locum work cannot be pensioned through a limited company. Retain the engagement and pension evidence and seek medical-accountant advice for your circumstances.
Does a Type 2 form replace my tax records?
No. It is an NHS pension record process. Keep PAYE, locum and company records separately for the relevant tax and reporting obligations.