2026/27 Guides
🏥 NHS 📚 Teacher 👮 Police 🩺 Locum 💼 Contractor
Your details
£
Typical NHS locum rates run £400–£900/day depending on specialty and region.
~200 days ≈ 4 days/week across 50 weeks. Adjust for your pattern.
Umbrella pays you via PAYE (with employer NI + margin). Outside-IR35 Ltd lets you take dividends.
Umbrella applies employer NI (~15%) plus a weekly margin before your PAYE. We model this as a deduction on the gross.
Estimated take-home per year
£0
Monthly £0 | Effective rate 0%
Gross £0
Where the money goes
0%
take home

Locum doctor take-home: umbrella vs Ltd company

Most locum doctors are paid either through an umbrella company (you're an employee, paid via PAYE after employer NI and a margin) or through their own Limited Company (only sensible when the contract is outside IR35). The difference in take-home can be 10%+ of your gross, so it's worth modelling both.

Umbrella company (PAYE)

Your day rate is billed to the trust; the umbrella deducts employer National Insurance (~15%) and a weekly margin, then pays you through PAYE. You pay Income Tax, employee NI and (if applicable) student loan on the remainder. Simple, but you keep the least.

Limited company — outside IR35

Your Ltd company invoices the trust. You pay yourself a small salary (often up to the personal allowance) and take the rest as dividends, which are not subject to NI and carry lower tax rates. The company pays Corporation Tax (~25%) on its profit. This usually wins for higher day rates, but adds accounting responsibilities.

IR35 matters

If your engagement is inside IR35, a Ltd company offers no tax advantage and you should use the umbrella route. Always confirm your IR35 status with the engager before choosing.

Related: navigating off-payroll rules →