MTA
Medical Tax Accountants
Specialist accountants for locum GPs

Locum GP tax,
without the guesswork.

From your first shift to your first company structure — we handle the tax and accounts of locum general practice with people who actually understand it.

The locum GP tax problem

Locum GPs deal with tax that most accountants haven't seen before.

The rules for locum general practice sit at the intersection of NHS pension law, self-employment tax, and specialist expense claims. A generalist accountant — even a very good one — will miss things unless they see locum GPs regularly.

NHS Pension Type 2 forms

Every locum shift generates pension contributions that need reconciling annually against your actual earnings. Miss the form and HMRC eventually notices. Most accountants have never seen a Type 2 form — we file them as standard.

Sole trader vs limited company

The wrong structure can cost thousands per year. Generalist accountants often default to sole trader — sometimes correctly, sometimes not. We model both options against your actual figures before recommending either.

Locum-specific expenses

Indemnity, GMC fees, mileage between practices, professional subscriptions, home-office and CPD costs — the claimable list is longer than most locums realise. Under-claiming is the norm.

How we help locum GPs

Everything a locum GP actually needs, in one place.

We work exclusively with medical professionals, so the accountancy is built around how locum GPs actually earn — not adapted from a generic template.

Structure analysis

Sole trader vs limited company modelled on your actual numbers — not a generic rule of thumb. We show you the tax cost of each side by side.

Company setup & registration

If a limited company is right for you, we handle the Companies House registration, VAT if required, PAYE scheme, and business bank account referrals.

NHS Pension Type 2 filings

Prepared and filed annually with your PCSE office. We track the deadlines so you don't have to think about them.

Annual tax returns

Self-assessment for sole traders and directors, plus corporation tax where relevant. Filed early so you know your tax bill months before it's due.

Cloud bookkeeping

Xero or QuickBooks set up and maintained so you can see where you stand any time. Real-time expense tracking means nothing gets missed at year end.

Year-end planning

Every February, a call to review your position and make tax-planning moves before the year end — not after, when your options have already closed.

The big decision

Sole trader or limited company?

The single biggest tax decision most locum GPs face. Below is the honest side-by-side — but the right answer depends on your actual figures, your NHS pension exposure, and your longer-term plans.

Sole trader
Limited company
Setup complexity
Minimal. Register as self-employed with HMRC.
Moderate. Companies House registration, business bank account, corporation tax registration.
Ongoing admin
Light. Annual self-assessment.
More involved. Annual accounts, corporation tax return, PAYE scheme, dividend paperwork.
Tax efficiency
Simple — you pay income tax and Class 2/4 NI on all profits.
Potentially more efficient above ~£60k profit through salary+dividend mix, especially if income can be retained in the company.
Accessing your money
Immediate. Business profits are yours.
Two-step. Extract via salary and dividends. Retained profits stay in the company.
NHS Pension impact
Straightforward. Pensionable pay is your net profit — Type 2 form reconciles annually.
Complex. NHS pension may not accept limited company income for pensionable earnings, depending on how you contract.
Best for
Lower-volume locums, or those maximising NHS Pension contributions.
Higher-earning locums (£60k+ profit), those growing a private practice alongside locum work, or those not relying on NHS Pension.
The honest answer: there is no universal right answer. If you're grossing under about £50,000 or planning to maximise NHS Pension contributions, sole trader is often more efficient. Above that, and where the NHS Pension isn't your main retirement plan, a limited company frequently wins. We'll model both on your actual figures before recommending either.
NHS Pension Type 2

The pension form most accountants miss.

Every locum GP who does NHS work generates pensionable earnings that need annual reconciliation. The mechanism is the NHS Pension Type 2 self-assessment form, submitted to your relevant Primary Care Support England (PCSE) office each year.

The form does one job: it reconciles the pension contributions deducted at source (usually via your payer or GPs' locum agency) against your actual pensionable pay for the year. If contributions were under-collected, you owe the balance. If over-collected, you're refunded.

What we do:

  • Track your pensionable pay throughout the year so the reconciliation is accurate.
  • Complete and submit the Type 2 form to PCSE by the 28 February deadline.
  • Flag any tapered annual allowance risk — increasingly relevant for higher-earning locums or those with mixed income sources.
  • Handle correspondence with PCSE if they query anything (they occasionally do).

If you've missed Type 2 filings in previous years, don't panic. We can also work through prior-year reconciliations and get everything current.

IR35 & expenses

The bits that catch locums out.

IR35 for locum GPs

If you work through a limited company, IR35 rules apply to each engagement. Traditional shift-based locum work — where you cover multiple practices, use your own indemnity, and control which shifts you take — is generally outside IR35.

But longer-term placements at a single practice, especially if you're integrated into a rota or providing services indistinguishable from a salaried GP, can bring you inside IR35 — which means the practice may need to operate PAYE on your fees.

We review each engagement, flag anything borderline, and where useful draft the contract language and working practices that keep you clearly outside.

What locums can claim

Typical allowable expenses for a locum GP include:

  • Medical indemnity (MDU, MPS, MDDUS)
  • GMC and Royal College fees
  • Mandatory training and CPD
  • Professional subscriptions (BMA, journals)
  • Mileage between practices (not home to work)
  • Equipment (stethoscope, otoscope, medical bag)
  • Home-office costs where applicable
  • Accountancy fees (yes, us)
Frequently asked

Questions locum GPs ask us.

Do I need to set up a limited company as a locum GP?
Not always. For lower-earning locums or those with strong NHS Pension exposure, sole trader is often the right choice. Above roughly £60,000 of net profit, and where the NHS Pension isn't a major factor, a limited company becomes tax-efficient. There isn't a universal answer — we model both structures on your actual figures before recommending either way.
What is NHS Pension Type 2 and when do I file it?
Type 2 is the annual self-declaration form for locum GPs (and salaried GPs with variable NHS income). It reconciles your NHS Pension contributions against actual pensionable pay for the year. It's due to your relevant Primary Care Support England (PCSE) office by 28 February following the end of the pension year. We prepare and submit it as part of our locum GP service.
How does IR35 apply to locum GP work?
IR35 applies where a locum operates through a limited company and the working arrangements resemble employment rather than genuine self-employment. Traditional shift-by-shift locum work is generally outside IR35, but longer-term placements with a single practice can bring it into scope. We review each engagement and flag any that need restructuring.
What expenses can I claim as a locum GP?
Common allowable expenses include medical indemnity, GMC and Royal College fees, mandatory training and CPD, professional subscriptions (BMA, MDU/MPS), mileage between practices (not home to work), equipment and reference materials, home-office costs where applicable, and accountancy fees. If you work through a limited company, pension contributions and salary paid to the company can also be tax-planned.
Do I need an accountant if I only do a few locum shifts a year?
If your locum income is modest and reported through PAYE (salaried) or a small annual self-assessment, you may not strictly need one. But even a few shifts a year triggers NHS Pension Type 2 obligations, and most low-volume locums under-claim on expenses. A short annual review is usually still worthwhile.
Can I switch to you if I already have an accountant?
Yes — switching is straightforward. We handle the professional clearance letter and paperwork transfer from your existing accountant. Most switches complete within 2–3 weeks with no gap in your compliance.
How much do you charge for locum GP accountancy?
Fees depend on structure and complexity. Sole trader locum services typically start at a fixed monthly fee, and limited company services (including bookkeeping, annual accounts, tax returns, and NHS pension work) at a higher fixed monthly fee. We give you a firm fee quote after the free consultation — no hourly billing surprises.
Do you work with locum GPs across the UK?
Yes. Although we are based in Rotherham, all our work is delivered digitally through Xero and secure document exchange. Our locum GP clients are spread across England, Scotland, and Wales. Consultations are by video call.
Ready when you are

Two ways to get started.

Whether you'd rather pick a time and chat, or write to us first — we're set up for both.

Book a free 30-min call

The fastest way to know if we're the right fit. Pick a time, we'll send a Google Meet link, and you'll leave the call with clear answers — no commitment, no pressure.

30 minutes Google Meet No obligation
Pick a time

Send us a message

Prefer to put your situation in writing first? Head to our homepage contact form with a few details and a member of the team will be in touch.

A member of the team will be in touch Email response
Open contact form