All self-employed people have a responsibility to record and declare their earnings for the purposes of tax. But how you choose to set-up as self-employed will ultimately affect how much profit you make plus how much paperwork you will have to do. So what are the two most common choices for a Locum pharmacist?
A sole trader is the simplest business structure you can operate under. There are over 3.4 million sole traders operating across all industries in the UK making it the most common structure.
Benefits of being a sole trader
Disadvantages of being a sole trader
Consider Sole Trader if
Your Locum plans are temporary, part-time or you are just starting out.
With an estimated 1.9 million businesses, limited companies represent the second most common business structure operating in the UK.
Benefits of being a limited company
Disadvantages of being a limited company
Consider limited company if
You are a higher-earning Locum, work for multiple pharmacy businesses or have plans to employ staff.
If in any doubt, seek advice from an accountant as to which option is best for you. You can read more about being self-employed and paying tax in our guide to locum pharmacist tax & expenses.