📋 Quick Summary
- Who this applies to: Locum doctors, agency nurses, bank staff working self-employed, healthcare contractors
- Common problem: Not claiming allowable expenses = overpaying tax
- Potential refund: £500 - £5,000+ depending on circumstances
- How far back: You can claim refunds for the last 4 tax years
- Key expenses: Professional subscriptions, travel, equipment, uniforms, indemnity insurance
Are You Self-Employed or Employed?
The first thing to establish is your employment status. This determines how you're taxed and what you can claim:
| Employed (PAYE) | Self-Employed |
|---|---|
| Work for one employer (NHS Trust or agency umbrella) | Work for multiple clients/hospitals |
| Tax deducted automatically via payroll | Responsible for own tax via Self-Assessment |
| Employer provides equipment & uniforms | Provide your own equipment |
| Set hours and location | Choose when and where to work |
| Limited expense claims (flat-rate allowances) | Full expense deductions available |
If you're genuinely self-employed (not via an umbrella company), you have far greater scope to reduce your tax bill through legitimate expense claims.
⚠️ IR35 Warning
Since April 2021, NHS Trusts and agencies determine your IR35 status. If they class you as "inside IR35," tax is deducted at source like an employee, but you can still claim expenses via Self-Assessment. If you're "outside IR35" or work through your own limited company, you have more flexibility — but also more responsibility.
Why Many NHS Staff Overpay Tax
We regularly see self-employed NHS staff who've been paying too much tax for years. The most common reasons:
1. Not Registered for Self-Assessment
Some locums and agency workers don't realise they need to file a tax return. They assume tax deducted at source covers everything — but without Self-Assessment, you cannot claim expenses that would reduce your bill.
2. Missing Allowable Expenses
Even those who do file often miss legitimate deductions: professional body fees, travel costs, equipment, training courses, and more. Each missed expense means paying tax you don't owe.
3. Wrong Tax Code
If you've moved between employed and self-employed work, HMRC may have applied the wrong tax code, resulting in over-deduction. This is especially common for those doing bank shifts alongside locum work.
4. Emergency Tax
New locums or those starting with a new agency often have emergency tax applied (usually code 1257L M1 or W1). This ignores your personal allowance history and typically results in overpayment.
5. No Previous Returns
If you've never filed a return, you may be owed refunds going back 4 years. We can help you submit retrospective returns to recover overpaid tax.
Allowable Expenses for Self-Employed NHS Staff
Here's what you can legitimately claim to reduce your taxable income:
Professional Subscriptions & Registration
| Expense | Typical Annual Cost | Notes |
|---|---|---|
| GMC Registration (doctors) | £456 | Mandatory - fully deductible |
| NMC Registration (nurses) | £120 | Mandatory - fully deductible |
| HCPC Registration (various) | £106 | Paramedics, radiographers, etc. |
| BMA Membership | £200-£500 | Depending on grade |
| RCN Membership | £100-£200 | Depending on salary band |
| MDU/MPS/MDDUS (indemnity) | £500-£10,000+ | Varies by specialty - fully deductible |
| Royal College Memberships | £200-£600 | RCGP, RCP, RCS, etc. |
Travel Expenses
If you travel between different hospitals or healthcare sites, you can claim:
- Mileage: 45p per mile (first 10,000 miles), 25p thereafter
- Public transport: Train, bus, or taxi fares to temporary workplaces
- Parking: Hospital car park fees at temporary sites
- Accommodation: If working away overnight
💡 Temporary Workplace Rule
You can claim travel to any workplace where you expect to work for less than 24 months. Most locum and agency placements qualify. If you work at the same hospital for 2+ years continuously, it becomes a "permanent workplace" and home-to-work travel is no longer claimable.
Equipment & Medical Supplies
- Stethoscopes and diagnostic equipment
- Medical bags and instruments
- Laptop or tablet for patient notes/admin
- Mobile phone (business use proportion)
- Reference books and clinical apps subscriptions
Uniforms & Protective Clothing
- Scrubs purchased yourself
- Specialist footwear (non-slip clinical shoes)
- Protective equipment (if not provided)
- Laundry allowance: £60-£140/year flat rate for washing uniforms at home
Training & CPD
- Mandatory training courses
- Conferences and seminars
- Revalidation costs
- Online CPD subscriptions (BMJ Learning, etc.)
- Exam fees (if related to current role)
Insurance
- Professional indemnity insurance (crucial for locums)
- Income protection insurance
- Public liability insurance (if applicable)
Home Office (If Applicable)
If you do admin, correspondence, or CPD from home:
- Simplified method: £6/week (£312/year) — no receipts needed
- Actual costs: Proportion of rent/mortgage interest, utilities, broadband based on hours worked at home
Example: How Much Could You Save?
Case Study: Dr. Fiona, Locum GP in Glasgow
Situation: Fiona works as a locum GP across 4 practices in the Greater Glasgow area. She earns £90,000/year and hadn't been claiming expenses properly.
Unclaimed expenses we identified:
- GMC Registration: £456
- MDDUS Indemnity: £6,200
- RCGP Membership: £486
- BMA Membership: £468
- Travel (12,000 miles): £5,100
- Laptop & phone: £600
- CPD courses: £800
- Home office: £312
Total expenses: £14,422
Tax saving at 40%: £5,769
Plus, we amended her previous 3 years' returns, recovering an additional £12,400 in overpaid tax.
How to Claim a Tax Refund
Step 1: Gather Your Records
Collect receipts, bank statements, and invoices for all work-related expenses. For previous years, request statements from professional bodies and check your bank history.
Step 2: Register for Self-Assessment
If you're not already registered, sign up on the HMRC website. You'll receive a Unique Taxpayer Reference (UTR) within 10 working days.
Step 3: File Your Return
Submit your Self-Assessment return including all allowable expenses. For previous years, you can amend returns within 12 months of the original deadline, or submit "overpayment relief claims" for earlier years.
Step 4: Wait for Your Refund
HMRC typically processes refunds within 4-12 weeks. You can choose to receive it as a bank transfer or cheque, or have it offset against future tax bills.
✅ We Can Help
At LimeTree Accounting, we specialise in helping self-employed NHS staff claim every penny they're entitled to. We'll review your situation, identify missed expenses, prepare your returns, and handle HMRC correspondence — so you can focus on patient care.
Special Considerations by Role
Locum Doctors
Locum GPs and hospital doctors often have the highest potential refunds due to expensive indemnity insurance (£3,000-£10,000+ for certain specialties). Many also work through limited companies — we can advise on the most tax-efficient structure.
Agency Nurses
Check whether you're paid via an umbrella company (employed) or directly (self-employed). If through an umbrella, you're employed — but may still be able to claim flat-rate expense allowances through HMRC's P87 form.
Healthcare Assistants & Support Workers
If you work for multiple care agencies and are genuinely self-employed, you can claim travel between sites, uniform costs, and training expenses. The amounts may be smaller, but they still add up.
Allied Health Professionals
Physiotherapists, occupational therapists, radiographers, and other AHPs working self-employed can claim HCPC registration, professional body fees, specialist equipment, and CPD.
NHS Bank Staff
Bank staff are usually employed (not self-employed), so different rules apply. However, you can still claim uniform maintenance allowance and certain professional subscriptions through HMRC's P87 form or your tax return if you complete Self-Assessment for other reasons.
Common Mistakes to Avoid
- Claiming home-to-work travel: Only claimable if your base is home and you travel to temporary workplaces
- Overclaiming mileage: Keep a mileage log — HMRC can challenge vague estimates
- Mixing personal and business: Only claim the business proportion of mixed-use items
- Missing the deadline: Self-Assessment deadline is 31st January; late filing incurs penalties
- Not keeping receipts: Digital photos/scans are fine, but keep records for 5 years
Frequently Asked Questions
Can self-employed NHS staff claim a tax refund?
Yes. Many self-employed NHS workers overpay tax, especially in their first year or when working through agencies. If you haven't claimed all allowable expenses, you may be entitled to a refund by submitting a Self-Assessment tax return or amending previous returns going back 4 years.
What expenses can locum doctors claim?
Locum doctors can claim professional subscriptions (GMC, BMA, MDU/MPS), travel between hospitals, medical equipment, CPD courses, professional indemnity insurance, uniform and laundry costs, and home office expenses if working from home for admin.
Do agency nurses need to complete Self-Assessment?
If you're truly self-employed (not employed via an umbrella company), yes. You must register for Self-Assessment and file a tax return by 31st January following the end of the tax year. Even if tax is deducted at source, Self-Assessment lets you claim expenses to reduce your tax bill.
Can I claim for scrubs and uniforms?
Yes. If you purchase your own scrubs, uniforms, or specialist clothing required for work, you can claim the full cost. You can also claim a flat-rate laundry allowance (£60-£140 per year depending on frequency) for washing uniforms at home.
How far back can I claim a tax refund?
You can claim tax refunds for the previous 4 tax years. For example, in the 2025/26 tax year, you can still claim refunds for 2021/22, 2022/23, 2023/24, and 2024/25. This can result in substantial refunds if you haven't been claiming expenses.
Get Your Free Tax Review
If you're a self-employed NHS worker in Glasgow or anywhere in Scotland, we'd love to help you ensure you're not overpaying tax. We offer:
- ✅ Free initial review of your tax situation
- ✅ Identification of unclaimed expenses
- ✅ Retrospective claims for the last 4 years
- ✅ Ongoing Self-Assessment preparation and filing
- ✅ Advice on the most tax-efficient structure (sole trader vs limited company)
Contact LimeTree Accounting Solutions today on 07800 874306 or email limetreeaccounts@yahoo.com for a no-obligation chat about your circumstances.
🩺 Self-Employed NHS Staff: Get Your Tax Review
Not sure if you're overpaying tax? Many locum doctors and agency nurses are owed thousands in unclaimed expenses. Let us review your situation — it could be the best call you make this year.
Book Free ConsultationOr call us directly: 07800 874306