Accountants for Healthcare
Accountants for UK doctors, dentists, pharmacists and locums, covering private practice, incorporation and NHS pension interactions.
How we help
Medical and dental professionals often have several income sources at once, employment, private work, locum shifts and partnership profit, and the tax position sits at the intersection of all of them rather than in any single one.
Locum work and how you trade
Locum doctors, dentists and pharmacists can operate as sole traders or through a limited company, and the right answer depends on the level and consistency of income, whether engagements fall inside IR35, and how much you need to draw. Incorporation is not automatically better for someone drawing everything they earn. See our guide to the 2026 tax position for locums.
The pension trap high earners hit
This is the issue that costs clinicians most, and it rarely shows up until a charge arrives. Pension growth counts against the annual allowance, which tapers for high earners, and for defined-benefit schemes the growth that counts bears little relation to what you contributed. The result is a tax charge on pension growth you never saw as income.
Additional private or locum income can trigger or worsen it. Carrying forward unused allowance from earlier years often mitigates the position, but only if it is calculated before the year ends. See the annual allowance and tapering for high earners and carry forward.
Expenses that genuinely qualify
Professional indemnity, GMC, GDC or professional body fees, equipment, courses maintaining existing skills, and travel between workplaces are typically allowable. Training that gives you a new qualification usually is not, and the distinction catches people out. Where you work from home for admin and remote consultations, a proportion of costs can be claimed.
Multiple income sources in one return
An employed consultant with private patients, or a partner with locum work alongside, needs all of it brought together properly, with payments on account forecast so January is not a surprise. See payments on account explained.
What we do for healthcare professionals
Practice and locum bookkeeping, Self Assessment, incorporation advice where it helps, and tax planning around the pension position rather than despite it.
Frequently asked questions
Should I work as a locum through a limited company?
It depends on your income level, whether engagements fall inside IR35, and how much you need to draw. Incorporating rarely helps if you draw everything you earn.
Why have I received an annual allowance tax charge?
Because pension growth counts against the annual allowance, which tapers for high earners. In defined-benefit schemes the growth that counts often bears little relation to what you paid in.
Can I claim my GMC or GDC fees?
Yes, professional body fees, indemnity cover and equipment are generally allowable. Training that gives you a new qualification usually is not.
I am employed but also do private work. Do I need a tax return?
Yes, private and locum income outside PAYE needs declaring through Self Assessment, and we bring all sources together in one position.
Can I reduce the pension annual allowance charge?
Often, by using unused allowance carried forward from earlier years, but the calculation has to be done before the tax year ends to be useful.
Do you work with dental practices as well as individuals?
Yes, from individual locums and associates through to incorporated practices with staff and payroll.
Looking for healthcare specialists?
Book a free consultation and we will tell you honestly whether we can improve on what you have.