Locum

Some Locum Doctors earn their remuneration from an employer in the normal way via the PAYE system, however, others opt to operate as a self-employed sole-trader, or via their own limited company.

In the case of a limited company the doctor can draw their remuneration as salary (via PAYE), or dividends, or a combination of both. This method requires reporting on corporate tax return and, usually, an element of formal accounting. Subject to circumstances, an individual tax return may be required in addition.

The self-employed method requires and individual 'self-assessment' tax return to be filed following each tax year of trading. Expenses incurred directly in the course of trading can be used to offset a tax calculation, as they can also be in the limited company scenario.