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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I'm a Doctor working in the Uk who earns roughly £2311 after

Resolved Question:

I'm a Doctor working in the Uk who earns roughly £2311 after tax and deductions per month.
I'm looking to increase my salary by working occasional locums at a rate of £45 per hour for 10 hour shifts
1) how many locums can i work before entering the next tax bracket
2) can i still be payed an NHS salary for my contracted job and be payed my locum salary via an umbrella company or will this increase my tax burden if i earn enough to push me into a next tax bracket
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

It would be helpful if you could let me know what you earn before tax. The net figure could gross up to almost any figure given the different circumstances taxpayers have.
Customer: replied 2 years ago.

hi

i earn 3905.50 per month before tax

Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Customer: replied 2 years ago.

thank you

Expert:  TonyTax replied 2 years ago.

Hi again.

1 You are already a higher rate taxpayer (40%) as your annual income is over £41,865. For the 2015/16 tax year, the 40% threshold will be £42,385. The next tax bracket, 45%, starts at £150,000 so you will need to work 230 10 hour locum shifts to reach earnings of £150,000.

2 You would need to ask your employer if you could work though an umbrella company as a locum. Many doctors work through agencies in addition to the main job but they are employed through the agency and the NHS has no problem with that. Umbreally companies are designed to allow you to claim expenses against tax and to take income as dividends which aren't subject to NICs and are treated as basic rate tax paid. Take a look here for information on dividends and tax.

I hope this helps but let me know if you have any further questions.

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