Get your locum dentist structure right from year one

How we work with locum dentists

Common questions

I'm a newly qualified dentist starting locum work. Should I incorporate from day one?

Almost never on day one. Most new-qualified locums earn below the threshold where Ltd-co structure pays back the admin cost. Start as a sole trader, register for self-assessment, file the first return cleanly. Re-look at incorporation after 12-18 months when your sustainable income level is visible. The wrong structure costs more in admin than the right structure saves in tax for the first year.

Can I be on the NHS Pension Scheme if I work through a limited company?

Access becomes complex. Self-employed sole-trader locums can usually join the NHS Pension via the practitioner pensions arrangement, which is straightforward. Limited-company locums have to navigate the rules around personal service company contracts; the most common workable arrangement is to take a salary from your PSC that runs through NHS Pension contributions, but this only captures the salary portion, not dividend income. Many limited-company locums lose pensionable years they would otherwise have accrued. This is one of the real downsides of incorporating early.

If a practice says my engagement is 'inside IR35', what does that mean for my Ltd company?

The practice (as fee-payer) will operate PAYE-style deductions on your fees before paying your company. Your company receives the net amount. You cannot extract that net as salary or dividend tax-efficiently because the tax has already been deducted at source. The effect is similar to being a PAYE employee of the practice for that engagement, but with the additional limited-company overhead. You can challenge the SDS if you believe it is wrongly issued, but you cannot ignore it once a fee-payer is operating on it.

What's the difference between an umbrella and a recruitment agency?

A recruitment agency finds you locum engagements; you can then choose your own structure (Ltd, sole-trader, umbrella) to receive the payment. An umbrella employs you under contract of employment, runs PAYE on your earnings, and pays you the net. Some recruitment agencies have their own umbrella arrangement or refer you to one. They are different things; the agency is the source of work, the umbrella is one way to receive payment.

Can I claim my dental school student loan interest?

No. Student loan repayments are not an allowable trade expense. They are a separate deduction calculated through self-assessment (Plan 2 or Plan 5 most likely for recent graduates), based on income above the threshold for your plan. The repayment is taken automatically through the assessment; the interest itself is not deductible from your taxable profit.