Locum nursing set up

RE: Locum nursing set up

Laura James — Sun, 02 Oct 2016 12:10:25 GMT

They charge you 1% as their fees... you then have to pay their NI contribution and some other tax for their company, bumping it up. They aren't charging the company you are working for, they are charging you.

If you are locumming for a short period of time then umbrella company is the easiest way of being paid. If you are a permanent locum (like me) then my agency advised me to set up a ltd company as you are still able to claim expenses and can sort out your tax yourself (it's easy apparently) saving you a lot of money

RE: Locum nursing set up

zookeeper — Fri, 30 Sep 2016 19:25:22 GMT

As I am new to umbrella companies, I have a query and you may be able to help

I am confused as I filled in my first time sheet today on an online portal with FPS umbrella company.

for my hourly rate X amount of hours I worked it came to £105 even calculated this correctly on my timesheet. When I clicked on review time sheet, the figure was £126! Why are they charging the company I locumed for an additional £21? I was told by FPS they don't charge the company. just charge me 1%. I am confused....

any ideas

thanks

Sarah

RE: Locum nursing set up

Alison Clare Hickman — Fri, 30 Sep 2016 14:59:37 GMT

Hiya,

I'm sending you a PM...

RE: Locum nursing set up

babbage — Fri, 30 Sep 2016 07:21:46 GMT

Hello this is great advice thank you. What umbrella company did you use??

RE: Locum nursing set up

Kirsty RVN — Thu, 29 Sep 2016 22:21:17 GMT

I have just finished 8 months of locum work.

I went through a umbrella company but I was only told by the agency that I would only pay a small administration fee of £24 and that was it.

When in fact you have

Employee tax and NI deducted as usual but also employer tax and NI so in fact you are paying two taxes.

I worked 7 on 7 off nights on £15 an hour and got paid fortnightly and my gross income was £1260 fortnight but by time the umbrella company took the deductions I got paid £600 which works out roughly £8 per hour which is similar to hour rate of a permanent nurse. As a locum you have no employee benefits so you will have to pay your own rcvs fee as well as vds cover. Also you will have no cpd allowance.

Also going through an umbrella company you can no longer under hmrc legislation claim travel expenses so due to the deductions it is just not worth it.

No one advised me correctly but the agencies get incentives to recommend umbrella companies which is why they don't inform you have the costs which is usually at a massive disadvantaged to the locum. I lost lots of money this may.

If I was doing the same job as a permanent nurse I would have earn £1060 so that a a huge difference. And due to no employee benefits and added expenses I would avoid umbrella companies.

It depends how long you plan to do it for. If short term that it might be the best option but longer term I would suggest self employed that way you can also use your expenses.

I got advice regarding this matter and we should not be paying the companies tax but unfortunately they are taking advantage of a rather gray area which saves the umbrella company millions every year as they are not paying tax it is the locum that is the one paying so avoid them unless you don't mind paying for the companies tax as well as your own!!

Kirstie