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Information for Doctors
Upon receipt of your time sheet, signed and authorised by the hospital, we will pay you weekly, directly into your bank account. We are legally required to deduct the current rate of Income Tax and National Insurance contributions.
Income TaxThe basic rate of taxation is 22% and the higher rate is 40% on taxable earnings. Tax levels for 2008/9 are as follows:
- There is a tax free threshold of £5,435
- Between £5,436 and £41,435 tax is at the rate of 22%
- Over £41,435, tax is at the rate of 40%
National Insurance Contributions
You pay National Insurance contributions (NICs) to build up your entitlement to certain social security benefits, including the State Pension. The type and level of NIC you pay depends on how much you earn and whether you're employed or self employed. You stop paying NICs when you reach State Pension age.
The following amounts apply for the 2008-2009 tax year: If you earn above £105 a week (the 'earnings threshold') and up to £770 per week you pay 11 per cent of this amount as 'Class 1' NICs you also pay one per cent of earnings above £770 a week as Class 1 NICs
The vast majority of locum doctors work through their own limited company. When working in the UK as a temporary contractor or locum doctor you are able to utilise the tax benefits of a limited company structure saving you up to 20% in post tax income (take home pay).
- Your salary is paid gross i.e. no deductions.
- You do not have to pay National Insurance Contributions
- Your will receive an uplift in your hourly rate
- You are entitled to claim company expenses, which are tax deductible
- You only have to declare your income and pay the relevant tax annually
- If your thinking about maximising your 'take home' pay contact Capital and we can advise you on the best service to suite your needs. Click here for more information.