What is the Best Way to be Paid?

Locum doctors carry out many different types of work and are paid in a variety of ways.

The locum doctors we work for include:

  • Salaried GPs completing single session appointments or regular retainer sessions in general practice.
  • GP principals completing out-of-hours work or other private work.
  • Doctors completing short-term or ad-hoc service contracts at hospitals.
  • Consultants providing occasional cover outside their NHS contracted work.
  • Doctors working on longer term appointments to cover maternity leave, illness or sabbaticals.

HOW ARE LOCUM DOCTORS PAID?

There are four main ways locum doctors can be paid:

  • By a PAYE salary from an employer or an agency.
  • Payment from an umbrella company.
  • Payment from your own limited company (personal service company)
  • Payment as a self employed contractor.

As a locum it is not simply a matter of choosing how you want to be paid.

A combination of your contract and various tax rules may determine which payment method you have to use.

AGENCY

If you are engaged through an agency, the agency will almost certainly have an influence over this.  For example, an agency is unlikely to pay you as a self employed individual and many offer you a higher sessional rate if you are engaged through an umbrella company or your own limited company (personal service company).

COSTS

There are different costs associated with the different methods of being paid.  If you are engaged through an agency the agency will take it’s charges or commission.  An umbrella company will charge separately for its services and you will probably need an accountant if you run your own limited company (personal service company) or trade as a self employed contractor.

NHS PENSION CONTRIBUTIONS

Certain categories of work carried out for NHS employers will be superannuable.  However, you will not be able to make superannuation contributions if you are engaged through an agency, trading through an umbrella company or trade through your own limited company (personal service company).

HOW WE CAN HELP

The best way to be paid is different for each locum doctor.  We will review your contract and individual circumstances and advise you of your best option.

We are experienced at this work.