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Locum Services

Locum & Freelance Tax Services

Smith-Milne & Co. provide a highly comprehensive taxation and accountancy service for freelance & locum professionals working in the UK, either self employed, or through a limited company.

Our specialist service, as well as assisting UK professionals, also assist locum and freelance personnel who come to the UK to work for a period. All too often, they are unaware of the tax system here and, due to the lack of specialist advice, they end up paying far more tax than is necessary.

We are here to help you organise your tax and accountancy affairs in the most efficient manner possible and minimise your tax liabilities. Whether self employed, a Limited Company or a PAYE employment position would suit you best, we will guide you every step of the way. Our primary aim is to take as much of the weight of running your tax affairs away from you as possible.

For those who have come from abroad, we are able to set up your business for you before you come to the UK. However, we generally advise against this. Why?

  • How do you know what you want? For example, our experiences show that a Limited Company is not always best.
  • What do you know about the challenge by HMRC (formerly Inland Revenue) to this type of business?
  • How would you respond to a practice which refused to engage you on a free-lance basis
By Contrast:
  1. 1. Ideally, we meet you before you begin work, as experience shows that is by far the best approach. The meeting will be a comprehensive induction into running a freelance business.
  2. We help you decide your work structure (self employed, limited company or PAYE).
  3. We will set up your limited company or self employment
  4. 4. As part of your limited company set-up, we will supply you with a professionally-written, tested contract, which will protect you from any HMRC status challenge
  5. 5. We will provide you with detailed information on how to operate your business, including invoicing, claimable expenses and VAT
Additionally:
  1. We help support your free-lance status in your appointments.
  2. We offer free telephone or email support.
  3. We help complete official forms.
  4. We facilitate Bank Accounts for limited company businesses.
  5. We reduce your tax liabilities.
  6. You can pay tax liabilities through us.
  7. We can provide mortgage and rental references and accountancy support for Tier 1 visa applications.
  8. In short, we help you with almost everything.

If, having read the above, you do still want your business set up before you come to the UK, then contact us and we will make the necessary arrangements.

The best way for us to evaluate the structure that you should adopt for your business in the UK is to meet you, preferably as soon as possible, before you start work as a locum. This meeting will put you under no obligation to use our accountancy services. There is a small charge for this meeting but it does makes up part of the annual fee.

When you choose to close your business we can advise you on the most tax-efficient way of doing so. We will discuss with you any potential issues that may arise with your return to your home country, or departure for another country. Finally, we can arrange to pay any subsequent liabilities for you, thereby allowing you to make a 'clean break' from your business interests here in the UK.

Comparative tax liabilities

The tables below show a comparison of the tax a single individual would pay under the various options, for a number of typical annual incomes (and assuming typical levels of expenses). The VAT-registered limited company is assumed to be providing veterinary services in these examples; the figures will vary for companies providing other services.

 

PAYE

Self employed

Ltd Co

Ltd Co (VAT reg.)

Gross income

£28,000

£28,000

£28,000

£28,000

Net tax

£6,756

£5,429

£3,929

£2,724

Income after tax

£21,244

£22,571

£24,071

£25,276

Average tax rate

24.1%

19.4%

14.0%

9.7%

 

 

PAYE

Self employed

Ltd Co

Ltd Co (VAT reg.)

Gross income

£34,000

£34,000

£34,000

£34,000

Net tax

£8,616

£6,941

£5,063

£3,617

Income after tax

£25,384

£27,059

£28,937

£30,383

Average tax rate

25.3%

20.4%

14.9%

10.6%

 

 

PAYE

Self employed

Ltd Co

Ltd Co (VAT reg.)

Gross income

£40,000

£40,000

£40,000

£40,000

Net tax

£10,476

£8,453

£6,197

£4,510

Income after tax

£29,524

£31,547

£33,803

£35,490

Average tax rate

26.2%

21.1%

15.5%

11.3%

Our fees We recognise that each client and their business is unique and as such we don't offer a one fee fits all package. We will however quote you a competitive fixed fee which will include the preparation of accounts and normal tax returns (including VAT returns) along with any other paperwork required, as well as advice and support throughout the year. If your affairs are unusually complex, we may charge an additional fee.

Limited company set-up

To set up a limited company, we charge a one-off fee of £310 (+ VAT). This includes the actual establishment of the company, filing of all the appropriate forms, registration of the company and its directors with the necessary HMRC departments, the production of paperwork for your bank and the provision of a necessary specialist contract to protect you and your company from an HMRC status challenge.

Did you know??

Tier 1 visas (formerly the Highly Skilled Migrant Program) are now available for younger vets. Acquiring this visa frees you from the work restrictions of the Youth Mobility (Tier 5) Visa. To help you achieve this, we recommend the services of Peter Lock & Co, a solicitor who specialises in Immigration Law, and with whom we have a reliable system of financial and documentary preparation for such applications. Contact us for further information, or find his link on our Links Page

That is about it in a nutshell, but if you want to see what we can do for you in detail then please click the link below.

What we do for you