Going self-employed as a locum is mostly bureaucratic admin done once, then a quarterly rhythm of bookkeeping and an annual tax return. The first month is the busiest.
Week 1 — Register with HMRC
Self-employed locums register as a sole trader on the HMRC website. You will get a Unique Taxpayer Reference (UTR) in the post within 10 working days. Without a UTR, you cannot invoice pharmacies and you cannot file a tax return.
If you also need a personal tax account online, set that up at the same time on gov.uk. It will save time later.
Week 1 — Professional indemnity
You cannot legally work as a community pharmacist without indemnity. The NPA, RPS and PDA all offer locum policies starting around £150–£300 a year. Get a certificate showing your name, the policy number, current dates and the cover amount — the pharmacy will ask for it.
Some employers' liability insurance only covers their own staff, not the locums they book. Don't assume — get your own.
Week 2 — Open a separate bank account
You're not required to, but it makes Self Assessment much easier. Free business accounts are available from most banks for the first 12–18 months. Use it only for pharmacy income and pharmacy expenses.
Week 2 — Pick a bookkeeping approach
You have two realistic options.
Spreadsheet. Fine if you do under 30 shifts a year. One row per shift: date, branch, hours, rate, gross, expenses. One row per expense purchase. Total monthly.
FreeAgent, QuickBooks Self-Employed or Xero. Worth the £10–£20/month if you do 50+ shifts. They import bank transactions, generate invoices, and pre-fill your Self Assessment. FreeAgent is free if you use NatWest, RBS or Mettle for your business account.
What counts as an expense
- Professional indemnity premium
- GPhC annual fee
- Mileage to shifts (HMRC rate is 45p per mile for the first 10,000 miles, 25p above)
- A reasonable share of your phone bill
- Annual courses, books, professional subscriptions
- Equipment used for work (eg. a tablet for CPD)
Travel from home to a regular workplace is NOT claimable — only travel to temporary workplaces, which most locum bookings count as. Keep notes.
Month 1 — Set aside tax money
A rough rule: put 30% of every payment into a separate savings account. Income tax + Class 2 + Class 4 NI typically work out to 25–30% of profit for a locum earning £50–80k a year. Treat that 30% as not yours until your tax return is filed.
Annual rhythm
- 6 April — the new tax year starts
- 31 January — Self Assessment for the previous tax year is due, and you pay the tax you owe
- 31 July — payment on account, if you owe enough to qualify for this
- 31 October — GPhC fee + revalidation
Set calendar reminders 30 days before each.
When to talk to an accountant
An accountant costs £400–£800 a year for a locum's Self Assessment. Worth it once you're earning over £50,000, considering a limited company, or have anything unusual (foreign income, second business, pension contributions you want to optimise).
For someone doing 1–2 days a week locuming alongside a permanent role, an accountant is usually overkill — a spreadsheet and one careful evening in January is enough.
