The current state of the National Health Service (NHS) means that they are spending more than ever on employing the services of locum doctors.
There is an increasing demand for locum doctors which means that more and more are creating their own limited company to be able to take advantage of the benefits of being self-employed which can be extremely appealing.
Current statistics show that the NHS is spending approximately £83.3million on locum doctors which is just to work in the ‘Accident and Emergency departments’ in 2013 which is an astonishing figure. This shows that there has been a steady increase in the demand for locum doctors services which has grown by 60% in the last few years alone.
How will I benefit from forming a limited company?
There are several key reasons why you should consider setting up your own limited company if you are a locum doctor or thinking about becoming a locum doctor. Here we look at some of the main areas you will find which should hopefully help you to make your decision.
More flexibility around hours of work
One of the most demanding parts of a job in the NHS or as a doctor, in general, are the demands on the individuals in terms of the number of hours you are required to work, especially in the earlier parts of your career as a junior doctor. Setting up your own locum doctor limited company means that you will be far more in control of the hours you work and how much work you are prepared to take on which is incredibly appealing for a majority of people.
Increasing rates of pay
As with most other types of contract work as limited companies, you can benefit from a number of improvements in take-home pay simply by working with a specialist accountancy service who has the right expertise.
According to a recent report in The Telegraph, there was an incredible £2billion spent on locum doctors over a 3 year period, the report also showed that some locum doctors had earned over £2,000 for a days work.
The main reasons for being able to achieve such high rates of pay by setting up your own limited company is because the employer (NHS) does not have to be responsible for offering you an employee benefits package. As with most contract work, you would reduce the demand on the employer due to them not having to pay holiday pay, sick pay, pension contributions and other costs that come with employing a person.
You should remember that demanding £2,000 per day is very much the top end of the scale for a locum doctor. As with any other type of profession or occupation, the amount of pay you will receive will generally be directly related to your experience as well as the geographical location (e.g. Central London will usually be higher pay).
By speaking to a locum doctor, limited company accountancy specialist, such as Gorilla Accounting, you will be able to calculate how much your take-home pay would be for a potential new role as a locum doctor.
Improve your work skills and experience
You will know that as a doctor, your career path will depend on the type of work you do, the amount of time you have spent working and which locations or hospitals you work in, which can dramatically improve as you work on different types of contracts.
Setting up your own new limited company as a locum doctor means that you should have a greater choice of where you work and in which areas you decide to specialise which can dramatically improve your personal development. If you are looking to change areas that you specialise in or if you want to improve your chances of being successful at winning higher level contracts, working as a locum doctor can help you to achieve that.
Work opportunity for retired professionals
It is fairly common for doctors careers to be shorter than other professions which is mainly because of the demands that are placed on the individuals, however, that does not mean that you need to retire altogether. Setting up your own locum doctor limited company as a mature and experienced professional means that you can keep on working well into your retirement with the flexibility to work as and when you choose.
Do I need a locum Doctors limited company accountant?
There are several key considerations for someone setting up a new limited company which can include:
– IR35
– VAT charging
– Annual returns
– Expenses
Working with a specialist in this field will generally mean that they are better equipped and have a greater understanding of your needs from other similar clients in the same situation. Working under your own limited company means that you have a number of potential advantages to be had from your accounts which you should ensure that your accountants know how to benefit from for you.
Speak to one of our experts at Gorilla Accounting today to find out more about how we can help you with your new locum Doctors limited company and make the most of your business.
