Most locum pharmacists work as sole traders — self-employed individuals invoicing pharmacies directly. Here's the general shape of getting set up.
Register with HMRC#
If you earn money outside of PAYE employment, you usually need to register as self-employed with HMRC and file a Self Assessment tax return each year. There are deadlines for registering after you start trading — check the current dates on GOV.UK.
Keep records#
- Keep a record of every shift: date, pharmacy, rate, hours and mileage. (That's what the shift log here is for.)
- Keep copies of the invoices you issue and note when each is paid.
- Hold on to receipts for legitimate business expenses (professional indemnity insurance, GPhC fees, mileage, professional subscriptions).
Set money aside for tax#
You'll typically owe Income Tax and National Insurance on your profits. A common habit is to move a portion of each payment into a separate account so the tax bill isn't a surprise. The exact percentage depends on your circumstances.
Where to get proper advice#
This is general information only. For your own situation, speak to a qualified accountant and check the official guidance on GOV.UK and HMRC.