Why does a Locum Vet need an Accountant?
Working as a locum vet has an array of financial and lifestyle advantages but making the decision to operate through an umbrella company or as a limited entity can have huge repercussions on your earnings.
In this blog, we'll take a closer look at how locum vets function under an umbrella company, as well as the financial benefits that come with using a professional accountant to structure an independent, limited business.
Umbrella or Limited?
Working as a locum vet under an umbrella company means that you'll be treated in a similar way to an employee. All you'll need to do is submit regular time sheets, and the umbrella company will deduct all the relevant taxes on your behalf before paying you.
Alternatively, you could choose to become the director of your own limited company, putting you in complete control of your business operations. You'll be able to balance salary and dividends to determine National Insurance contributions, claim for certain business expenses and have a company that operates separately to your own finances.
Going down the limited company route might seem daunting at first, but an experienced accountant can help you to navigate your business and reap the rewards of running your own limited company.
No matter what sector you're operating in as a locum, you'll first need to incorporate your limited company. If you're using an accountant, they’ll be able to help register your business with Companies House, as well as setting up a business bank account and advising on relevant insurances.
Even as a locum, you'll typically need professional indemnity insurance to safeguard against any legal action for negligence or poor advice, so it's essential that you've got this in place from launch.
Once your limited company is up and running, now's the time to focus on managing your business finances. Your accountant will help to ensure that taxes are paid on time, avoiding the hassle of incorrect or incomplete paperwork, expensive late fines and possible legal action.
As a locum, being able to manage your business finances on the move is a massive plus, giving you the freedom to upload receipts, monitor your bank balance and receive tax notifications from any connected device. FreeAgent does exactly this and it’s included in our all-inclusive package.
Every business is different and there'll be plenty of unique challenges that you'll come against during your time as a locum vet. Having an experienced financial professional on hand to answer any questions can make a big difference as a business owner. Your accountant will understand the detailed intricacies of your business, helping to improve the efficiency and effectiveness of your finances.
The route you decide to take will ultimately be down to your own individual circumstances, but seeking the advice of a professional accountant can help you to get the most from the veterinary services you offer.
Gorilla Accounting offers an all-inclusive accountancy service for locum vets, from limited company incorporation through to your annual tax returns. We've helped locums from across the medical and veterinary industry to create, manage and grow their businesses with a simple pricing plan of just £85 + VAT per month.
Find out more about how Gorilla Accounting can help your locum business by contacting a member of the team today.