Working as a locum doctor means you can claim various business expenses to reduce your tax bill. Understanding locum doctor expenses what you can claim is crucial for maximizing your take-home pay and staying compliant with HMRC rules.

The key principle is simple: you can claim expenses that are wholly and exclusively for business purposes. For locum doctors, this covers everything from travel between assignments to professional development costs.

Travel and Transport Expenses

Travel costs form the largest category of locum doctor expenses what you can claim. You can deduct travel expenses between different work locations, but not your commute to a regular workplace.

Allowable travel expenses include:

  • Mileage at 45p per mile (first 10,000 miles) or 25p per mile thereafter
  • Public transport costs between assignments
  • Parking fees at work locations
  • Taxi fares when public transport isn't practical
  • Congestion charges and tolls

If you work at three different practices in one week, you can claim the mileage between each location. However, you cannot claim the journey from home to your first assignment or from your last assignment back home.

Keep detailed records including dates, destinations, mileage, and business purpose. A mileage log or app makes this easier to track throughout the year.

Accommodation and Subsistence

When working away from home, locum doctors can claim reasonable accommodation and meal costs. This applies when you're working too far from home to return daily.

Claimable accommodation expenses:

  • Hotel or B&B costs when working away overnight
  • Reasonable meal expenses while away from home
  • Incidental expenses like phone calls or internet access

HMRC considers "reasonable" based on the circumstances. A £200 per night hotel in central London might be reasonable, while the same cost in a small town wouldn't be.

Keep all receipts and note the business reason for being away. Working a week-long assignment 200 miles from home would justify accommodation costs, but a single day shift probably wouldn't.

Professional Development and Training

Maintaining your medical skills is essential for locum work. You can claim various professional development expenses as part of locum doctor expenses what you can claim.

Training and development expenses include:

  • Medical conferences and seminars
  • CPD courses and workshops
  • Medical journals and publications
  • Online learning platforms and medical apps
  • Examination fees for additional qualifications

A GP locum attending a £500 cardiology update course can claim the full cost, plus travel and accommodation if required. The key is proving the training relates to your current or future locum work.

Professional Fees and Memberships

Several mandatory and optional professional costs are allowable expenses for locum doctors.

Professional fees you can claim:

  • GMC annual retention fee
  • Medical defence organisation costs (MDU, MPS, MDDUS)
  • Royal College membership fees
  • BMA membership (if used for professional purposes)
  • Locum agency registration fees

These are essential costs for maintaining your right to practice. A consultant paying £495 for GMC registration and £3,000+ for medical indemnity can claim both as business expenses.

Equipment and Technology

Locum doctors often need their own equipment and technology for work. Many of these costs are allowable expenses.

Equipment expenses include:

  • Stethoscopes, medical bags, and diagnostic tools
  • Tablets or laptops used for work
  • Medical software and apps
  • Mobile phone costs (business proportion only)
  • Professional clothing and uniforms

For expensive items like laptops or medical equipment, you may need to claim capital allowances over several years rather than the full cost in one year. Items under £1,000 can typically be claimed in full immediately.

Home Office and Administrative Costs

Many locum doctors work from home for administrative tasks. You can claim a proportion of home running costs as office expenses.

Home office expenses:

  • Proportion of utility bills (electricity, gas, water)
  • Broadband and phone line costs
  • Office supplies and stationery
  • Accountancy and bookkeeping fees
  • Business insurance

HMRC allows a simplified rate of £4 per week (25+ hours) or £2 per week (under 25 hours) for home office costs. Alternatively, calculate the actual business proportion of your home running costs.

What You Cannot Claim

Understanding what's not allowable is just as important when considering locum doctor expenses what you can claim.

Non-allowable expenses include:

  • Normal commuting costs to a regular workplace
  • Personal meals and entertainment
  • Clothing that could be worn outside work
  • Fines and penalties
  • Personal insurance or medical expenses

The "wholly and exclusively" test applies. If an expense has any personal benefit, only the business proportion is allowable.

Record Keeping Requirements

HMRC requires detailed records for all claimed expenses. Poor record keeping is the most common reason for disallowed claims.

Essential records include:

  • All receipts and invoices
  • Bank statements showing payments
  • Mileage logs with dates and destinations
  • Business purpose for each expense
  • Evidence of business use for mixed personal/business items

Digital receipts and expense tracking apps make this easier. Take photos of paper receipts immediately and store them securely.

Tax Relief and Savings

Claiming allowable expenses reduces your taxable income, saving you tax at your marginal rate. A higher rate taxpayer saves 40% of each pound claimed, while additional rate taxpayers save 45%.

A locum doctor earning £80,000 with £8,000 of allowable expenses saves £3,200 in tax (40% rate). The same expenses save £4,500 for someone paying the 45% rate.

Don't forget National Insurance savings too. Class 2 and Class 4 National Insurance are calculated on profits after expenses, providing additional savings.

Getting Professional Help

Tax rules for locum doctors can be complex, especially when combined with NHS pension considerations and IR35 regulations. Many locum doctors find specialist advice pays for itself through optimized expense claims and tax planning.

A qualified medical accountant can help identify all allowable expenses, ensure proper record keeping, and maximize your tax relief while keeping you compliant with HMRC requirements.