Accountants for Mammographers & Breast Screening Professionals
If you work as a mammographer, breast screening professional or healthcare locum, managing the financial side of your work can become more complicated when you move from permanent employment into contracting or locum work.
At Yorkshire Medical Accountants, we provide specialist accountancy support for healthcare professionals, including those carrying out mammography and breast screening work for the NHS and private healthcare providers.
Whether you are considering setting up a limited company for the first time, have been offered an outside IR35 contract, or already operate through your own company, we can help you understand your responsibilities and manage the ongoing accounting and tax requirements.
Setting Up a Limited Company for Mammography Locum Work
Some mammographers undertake additional NHS or private healthcare work through agencies, insourcing providers or directly with healthcare organisations.
Depending upon the contractual arrangement and its IR35 status, it may be appropriate to provide these services through your own limited company.
For someone who has previously worked primarily through PAYE, setting up a company can initially seem complicated. There are several areas that need to be considered, including:
Limited company formation
Companies House registration
HMRC registration
Corporation Tax
Director payroll
Annual company accounts
Confirmation Statements
Personal Self Assessment
Salary and dividend planning
Business expenses
Record keeping and bookkeeping
A specialist medical accountant can help ensure these are dealt with correctly from the beginning.
Outside IR35 Contracts for Mammographers
IR35 is particularly important for healthcare professionals working on a contract or locum basis.
You may, for example, be offered mammography work on an NHS breast screening mobile unit, with the work arranged through an agency or healthcare insourcing company.
If a contract is confirmed as being outside IR35, it may be possible for you to provide your services through a limited company and receive payments into that company.
However, simply describing a contract as outside IR35 does not automatically determine its tax treatment.
Factors surrounding the contract and the actual working relationship may need to be considered. These can include control over how the work is performed, substitution, mutuality of obligation and the overall relationship between the healthcare professional and the organisation receiving the services.
We can help mammographers and other medical professionals understand the accounting implications of working through a limited company and how this fits alongside other employment or locum income.
Salary and Dividends for a Mammographer’s Limited Company
One of the questions new limited company directors frequently ask is:
“How do I pay myself?”
Money received by your company does not automatically become your personal income.
Depending upon your circumstances, you may take money from the company through a combination of director’s salary and dividends, together with reimbursement of legitimate business expenses.
The appropriate balance depends upon your individual circumstances, other sources of income and current tax rules.
This can be particularly important for mammographers who have a permanent NHS position alongside separate locum or breast screening work.
We can advise you on an appropriate remuneration strategy while ensuring the necessary payroll, dividend documentation and tax reporting requirements are dealt with correctly.
What Expenses Can a Mammography Locum Claim?
A limited company can generally deduct legitimate business expenditure when calculating its taxable profit, subject to the relevant tax rules.
Depending upon your circumstances, expenses associated with mammography locum work could potentially include:
Professional subscriptions and memberships
Professional indemnity insurance
Relevant training and continuing professional development
Specialist equipment or work-related supplies
Accountancy fees
Business telephone costs
Computer and office equipment
Software and administration costs
Certain travel expenses
Mileage where the relevant conditions are satisfied
Travel and mileage can be a particularly important area for healthcare locums.
Whether travel to an NHS hospital, mobile breast screening unit or other temporary workplace qualifies as business travel depends upon the circumstances. It is therefore important not to assume that every journey connected with work is automatically tax deductible.
We can advise you on what can legitimately be claimed and the records that should be retained.
Mammographers Working for the NHS and Private Healthcare Providers
Mammographers can have several sources of income simultaneously.
For example, you might have a permanent NHS role while undertaking additional breast screening work through an agency or your limited company.
Alternatively, you might work entirely on a locum basis across different hospitals, clinics and mobile breast screening units.
This makes it particularly important to look at your finances as a whole rather than treating the limited company in isolation.
Your salary, PAYE income, dividends, pension contributions and other taxable income can interact with one another and affect your overall tax position.
Our role is to help you understand the complete picture.
Corporation Tax and Annual Accounts
Once your mammography business is operating through a limited company, the company will have its own accounting and tax responsibilities.
These typically include preparing annual statutory accounts and submitting the necessary information to Companies House and HMRC.
The company may also need to pay Corporation Tax on its taxable profits.
We can calculate your company’s tax liability, prepare the required accounts and returns and make sure you know what needs to be paid and when.
Companies House Confirmation Statement
Limited companies must normally submit a Confirmation Statement to Companies House at least once every 12 months.
This confirms that important information held about the company is correct.
We can deal with the Confirmation Statement as part of the ongoing administration of your company, helping you remain compliant with Companies House requirements.
Self Assessment for Mammographers
Operating through a limited company does not remove your personal tax responsibilities.
Company directors and shareholders may need to consider whether a Self Assessment tax return is required, particularly where there are dividends or other sources of untaxed income.
If you also have NHS employment, private work, investment income or other earnings, these may also need to be taken into account.
We can prepare your personal tax return alongside the company’s accounts so that both your personal and business finances are considered together.
Do Mammographers Need an Accountant?
There is no requirement for every limited company to appoint an accountant, but healthcare professionals often find specialist advice valuable.
The interaction between NHS employment, locum income, limited companies, IR35, payroll, dividends, pensions, expenses and personal taxation can quickly become complicated.
Using an accountant familiar with healthcare professionals can also save considerable time.
Instead of worrying about Companies House deadlines, payroll submissions and Corporation Tax calculations, you can concentrate on your clinical work knowing that the financial administration is being managed.
Starting Mammography Locum Work Through a Limited Company
If you are at the beginning of your locum career, it is worth obtaining advice before your first contract starts wherever possible.
We can help with the process from the outset, including:
Discussing your proposed working arrangement.
Considering the accounting implications of the contract and its IR35 status.
Setting up your limited company where appropriate.
Registering the company with the relevant authorities.
Establishing payroll and accounting records.
Explaining how to pay yourself.
Advising on allowable expenses and mileage.
Preparing the company’s annual accounts and tax returns.
Dealing with Companies House requirements.
Preparing your personal Self Assessment where required.
This gives you a clear structure from the beginning rather than trying to correct accounting or tax issues later.
Specialist Medical Accountants for Mammographers
Yorkshire Medical Accountants works with healthcare professionals and understands that medical locum arrangements can be different from those of a conventional small business.
Whether you are a mammographer undertaking NHS breast screening work, a healthcare professional taking occasional locum assignments, or an established contractor working through a limited company, we can provide accountancy and tax support appropriate to your circumstances.
We can also explain our fees and exactly what is included before you proceed, so you understand the cost of both setting up and maintaining your company.
Frequently Asked Questions
Can a mammographer set up a limited company?
Yes. A mammographer can establish a limited company, although whether it is appropriate to use that company for a particular engagement depends on the contractual and tax circumstances, including IR35 where relevant.
Can I work for the NHS through my own limited company?
Healthcare professionals can undertake some engagements through limited companies, but the tax treatment depends on the particular arrangement and employment-status rules. You should establish the status of the engagement rather than assuming that all NHS locum work can be paid through a limited company.
What does outside IR35 mean?
Broadly, an outside-IR35 engagement is one where the relevant working arrangement is treated as genuinely independent contracting rather than employment for the purposes of the off-payroll working rules. The contractual terms and actual working practices both matter.
Can I have an NHS job and a limited company?
Yes. It is possible to have PAYE employment and operate a limited company at the same time. Your different sources of income should be considered together when looking at your overall personal tax position.
Can a mammographer claim mileage?
Potentially. Business mileage and travel expenses may be allowable where the relevant HMRC conditions are satisfied. Whether a particular location is considered a temporary workplace can be important, so individual circumstances should be checked.
Can I claim professional registration and training costs?
Certain professional subscriptions, insurance, training and continuing professional development costs may qualify as business expenses depending on their nature and the circumstances. We can advise on the expenses relevant to your work.
How should I pay myself from my limited company?
Limited company owners may receive money through salary, dividends, reimbursement of legitimate expenses or other methods depending on their circumstances. The appropriate approach should consider your other income and current tax rates rather than applying the same salary-and-dividend formula to every director.
Do I need to complete a Self Assessment tax return?
This depends on your individual circumstances and sources of income. We can assess whether a return is required and prepare it for you where necessary.
Speak to Yorkshire Medical Accountants
If you are a mammographer, breast screening professional or medical locum considering working through a limited company, speak to Yorkshire Medical Accountants before getting started.
We can help you understand the accounting and tax implications, establish the appropriate company structure and look after the ongoing accounts, payroll, Corporation Tax and personal taxation associated with your work.
Contact Yorkshire Medical Accountants today to discuss your mammography or healthcare locum accountancy requirements.
