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.
The basic rate of taxation is 22% and the higher rate is 40% on taxable earnings. Tax levels for 2008/9 are as follows:
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).