Free calculator · UK 2026/27 rates
Locum Structure Comparison
Enter your day rate, days worked per year and annual deductible expenses. The calculator compares sole-trader, limited company and umbrella structures side by side and highlights the winning option on current-year net take-home.
Locum Structure Comparison
Enter your day rate, days worked per year and annual deductible expenses. The calculator compares sole-trader, limited company and umbrella structures side by side and highlights the winning option on current-year net take-home.
Indicative UK 2026/27 model. Ltd-co assumes £12,570 salary plus remainder as dividend, £1,800 admin cost, no Employment Allowance. Umbrella assumes 5% margin. NHS Pension and IR35 implications not modelled.
Sense-check your figure with a specialist dental accountant
Calculators give you a solid starting point, but the final number depends on your NHS Pension status, prior-year reliefs, and how different taxes interact in your specific structure. A short conversation with a dental-specialist accountant puts a firm figure on it, with no obligation.
Get the full Associate and locum dentist tax model and guide
Get the associate take-home model
What you keep from your fees after income tax, Class 4 and Class 2 NIC, with live formulas. A locum structure sheet: sole trader vs limited company vs umbrella side by side.
| A | B | C | D | E | F | G | H | I | J | K | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Your figures (edit the blue cells) | ||||||||||
| 2 | Gross fees you generate a year | £120,000 | |||||||||
| 3 | Your fee split | 50% | |||||||||
| 4 | Lab fees (% of gross) | 8% | |||||||||
| 5 | Your take-home | ||||||||||
| 6 | Taxable profit | £52,200 | |||||||||
| 7 | Income tax | £8,312 | |||||||||
| 8 | Class 4 and Class 2 NIC | £2,480 | |||||||||
| 9 | Estimated take-home: £41,408 (effective rate 20.7%) | ||||||||||
| 10 | |||||||||||
| 11 | |||||||||||
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How this works
The sole-trader model applies income tax and Class 2/4 NI directly to trading profit (gross income minus expenses).
The limited company model pays a £12,570 director salary (at the NI threshold), then extracts remaining post-CT profit as dividends. A fixed £1,800 admin cost covers accountancy and filing. Employment Allowance is excluded as most single-director locum companies do not qualify.
The umbrella model assumes the umbrella company retains 5% of gross income and processes the remainder through PAYE, deducting employer NI, income tax and employee NI.
Worked example: James locums at £450 per day for 180 days per year (£81,000 gross) and has £6,000 of deductible expenses, giving trading profit of £75,000. As a sole trader he pays income tax of £17,432 and Class 4 NI of £2,757 plus Class 2 of £179, leaving a net take-home of approximately £54,632. Through a limited company with a £12,570 salary and dividends on the remaining post-CT profit, his net is approximately £51,729 after the £1,800 admin cost. Via an umbrella (5% margin, 15% employer NI on the balance) his net falls to approximately £48,929. Sole trader wins by around £2,900 over limited company at this income level.
Frequently asked
- Which structure is best for a dental locum?
- On headline net pay at typical rates, sole trader or limited company usually wins depending on income level. At lower incomes (gross under £50,000) the difference is small. At higher incomes the Ltd advantage grows but is partially offset by NHS Pension restrictions and admin costs. Umbrella is rarely the optimal structure on net pay alone but suits locums who want simplicity and no filing obligations.
- Does IR35 affect dental locums?
- IR35 applies if the engaging practice issues a Status Determination Statement concluding you are inside IR35 for that engagement. If inside IR35, the Ltd company receives net of PAYE deductions and dividend extraction on that income is unavailable. The comparison shifts towards umbrella or sole trader for that engagement.
- Can I access the NHS Pension as a locum?
- Sole-trader locums can generally join the NHS Pension Scheme via the practitioner arrangement. Ltd-company locums have more restrictive access, and umbrella locums are typically limited to their employer's auto-enrolment scheme. The NHS Pension value can outweigh headline tax differences for longer-term locums.
Get the full picture
Every figure here is modelled on standard 2026/27 thresholds. Your actual position depends on your NHS Pension status, prior-year usage, other income, and how decisions interact. Take the free practice health check to get a personalised view.