Locum doctor, umbrella company

[wtmlive]

Hello
I am a doctor working in the NHS under Tier 2 visa. I can work up to 20 hours a week as a locum, I have registered with a locum agency who have advised me to register with an umbrella company for my locum payments and have said there are many doctors who can't declare themselves as limited company but are able to register with umbrella companies to sort out their locum payments. I have been told I will be saving some money on taxes and NI which usually the hospital will already deduct from my locum payments before paying me.

My questions are:

1. Is it legal to be registered with umbrella companies whilst being on Tier 2?
2. Any recommendations for any of these companies from someone who has experience of them?
3. I have looked online and xxxxxx seems to be one of the more popular ones. Anyone have any experience of dealing wit h them?

Ideally I would declare myself as LLC but as long as I am on Tier 2, that's not possible. Do I have any other options?
Thank you.

[Frontier Mole]

Simple answer - you can't use an umbrella company as a tier 2 migrant. It is illegal and counts as the third party supply of labour which would invalidate your visa conditions.
You can however undertake secondary work up to 20 hours per week as a locum as long as the role is equal to that of your current role. If you are a consultant level doctor doing a GP locum role that is not acceptable.
If you are for instance doing consultancy in the same field as your NHS role for a private hospital then that is fine. The rate of pay has to be at the minimum rate for the role as per your SOC.

[wtmlive]

Thanks for the input Frontier Mole.
I am perfectly happy with locuming on PAYE basis.
The only worrying thing was whether I need to file tax returns at the end of the tax year or need an accountant to calculate my taxes if I decide to locum in a hospital separate from where I work primarily.
I wonder if I can claim back travel and accommodation expenses while doing the locum posts via form 87.
If I am being paid through PAYE during these jobs anyway, is there a need to file tax returns at all?

[wtmlive]

double post.

[manci]

I think there is a misunderstanding here. The firms you quoted are accountancy firms who will handle your tax affairs for a fee - they are not umbrella companies as used in an immigration context.

Normally you have to fill in a self assessment tax return (form SA100) to report your income and to claim tax reliefs. You can either diy or pay an accountant to do it for you.

[wtmlive]

xxxxxxxxx is the name of the umbrella company formed by XYZ and who are offering their services. I thought it was just another method of PAYE payment until I visited this forum.

[plabo]

Hello
I am a doctor working in the NHS under Tier 2 visa. I can work up to 20 hours a week as a locum, I have registered with a locum agency who have advised me to register with an umbrella company for my locum payments and have said there are many doctors who can't declare themselves as limited company but are able to register with umbrella companies to sort out their locum payments. I have been told I will be saving some money on taxes and NI which usually the hospital will already deduct from my locum payments before paying me.

My questions are:

1. Is it legal to be registered with umbrella companies whilst being on Tier 2?
2. Any recommendations for any of these companies from someone who has experience of them?
3. I have looked online and SJD accounting/Nixon Williams seems to be one of the more popular ones. Anyone have any experience of dealing wit h them?

Ideally I would declare myself as LLC but as long as I am on Tier 2, that's not possible. Do I have any other options?
Thank you.

I am a similar doctor working on a Tier 2 General visa.

I usually do locums (maximum 20 hours per week at the same level at which I already hold a Tier 2 sponsorship). These locum shifts at other NHS Trusts are done through a locum agency obviously.

I get paid through an Umbrella company and this helps me offset the tax by showing my expenses (like mileage, food etc).

It is COMPLETELY okay to work 20 hours extra per week (maximum) and get paid through an Umbrella company. BEWARE that you cannot setup a Limited company whilst being on a Tier 2 visa.

I have got this confirmed from one of the solicitors and also agency name removed by moderator (locum agency) whom I work for and the following is their reply:


"It is absolutely fine for a Tier 2 doctor to be paid through an Umbrella company. The only time that you would not be able to be paid through an Umbrella company is if you are to work at a Trust which uses a VAT saving scheme such as xxxxxxx in which case you would need to work PAYE."

I can refer you to the Umbrella company I get paid through. They charge ONLY £ 5.60 per 12 hour shift as Administration fee (no weekly fee, no other compulsory fee, just this amount and ONLY when you do a locum shift for a DAY). NO other charges whatsoever. There are many Umbrella companies who will charge you on a weekly basis (wether you do extra work or not, this one doesn't!)

Send me a message on my inbox here and I will recommend you to the Umbrella company I work under. Additional information about a voucher for poster if you join removed.

[moralip]

Hi Plabo

I just came across to your comments as set-out below. Although more than 4 years passed since then but I wonder you could help me telling if any doctor can just do locum work in the UK under Tier-2 Visa? In other words, his or her Certificate of Sponsorship would be issued for Locum Job only? Thanks

-----------------------------------------------------

Hello
I am a doctor working in the NHS under Tier 2 visa. I can work up to 20 hours a week as a locum, I have registered with a locum agency who have advised me to register with an umbrella company for my locum payments and have said there are many doctors who can't declare themselves as limited company but are able to register with umbrella companies to sort out their locum payments. I have been told I will be saving some money on taxes and NI which usually the hospital will already deduct from my locum payments before paying me.

My questions are:

1. Is it legal to be registered with umbrella companies whilst being on Tier 2?
2. Any recommendations for any of these companies from someone who has experience of them?
3. I have looked online and SJD accounting/Nixon Williams seems to be one of the more popular ones. Anyone have any experience of dealing wit h them?

Ideally I would declare myself as LLC but as long as I am on Tier 2, that's not possible. Do I have any other options?
Thank you.

I am a similar doctor working on a Tier 2 General visa.

I usually do locums (maximum 20 hours per week at the same level at which I already hold a Tier 2 sponsorship). These locum shifts at other NHS Trusts are done through a locum agency obviously.

I get paid through an Umbrella company and this helps me offset the tax by showing my expenses (like mileage, food etc).

It is COMPLETELY okay to work 20 hours extra per week (maximum) and get paid through an Umbrella company. BEWARE that you cannot setup a Limited company whilst being on a Tier 2 visa.

I have got this confirmed from one of the solicitors and also agency name removed by moderator (locum agency) whom I work for and the following is their reply:


"It is absolutely fine for a Tier 2 doctor to be paid through an Umbrella company. The only time that you would not be able to be paid through an Umbrella company is if you are to work at a Trust which uses a VAT saving scheme such as StaffFlow in which case you would need to work PAYE."

I can refer you to the Umbrella company I get paid through. They charge ONLY £ 5.60 per 12 hour shift as Administration fee (no weekly fee, no other compulsory fee, just this amount and ONLY when you do a locum shift for a DAY). NO other charges whatsoever. There are many Umbrella companies who will charge you on a weekly basis (wether you do extra work or not, this one doesn't!)

Send me a message on my inbox here and I will recommend you to the Umbrella company I work under. Additional information about a voucher for poster if you join removed

[CR001]

by moralip » Tue Nov 17, 2015 6:39 pm
Hi Plabo

I just came across to your comments as set-out below. Although more than 4 years passed since then but I wonder you could help me telling if any doctor can just do locum work in the UK under Tier-2 Visa? In other words, his or her Certificate of Sponsorship would be issued for Locum Job only? Thanks

Who would your sponsor be? It is illegal/not permitted to work under an umbrella company on a Tier 2 General. HO is clamping down hard on this. You will need to find a sponsor on the approved Tier 2 sponsor list.

Most NHS trusts have a 'staff bank' system. You could look into that. However, for a Tier 2 General, there are minimum hours required and 20 is too low.

[napine]

Hello
I am a doctor working in the NHS under Tier 2 visa. I can work up to 20 hours a week as a locum, I have registered with a locum agency who have advised me to register with an umbrella company for my locum payments and have said there are many doctors who can't declare themselves as limited company but are able to register with umbrella companies to sort out their locum payments. I have been told I will be saving some money on taxes and NI which usually the hospital will already deduct from my locum payments before paying me.

My questions are:

1. Is it legal to be registered with umbrella companies whilst being on Tier 2?
2. Any recommendations for any of these companies from someone who has experience of them?
3. I have looked online and xxxxxxxxx seems to be one of the more popular ones. Anyone have any experience of dealing wit h them?

Ideally I would declare myself as LLC but as long as I am on Tier 2, that's not possible. Do I have any other options?
Thank you.

I am a similar doctor working on a Tier 2 General visa.

I usually do locums (maximum 20 hours per week at the same level at which I already hold a Tier 2 sponsorship). These locum shifts at other NHS Trusts are done through a locum agency obviously.

I get paid through an Umbrella company and this helps me offset the tax by showing my expenses (like mileage, food etc).

It is COMPLETELY okay to work 20 hours extra per week (maximum) and get paid through an Umbrella company. BEWARE that you cannot setup a Limited company whilst being on a Tier 2 visa.

I have got this confirmed from one of the solicitors and also agency name removed by moderator (locum agency) whom I work for and the following is their reply:


"It is absolutely fine for a Tier 2 doctor to be paid through an Umbrella company. The only time that you would not be able to be paid through an Umbrella company is if you are to work at a Trust which uses a VAT saving scheme such as xxxxxxx in which case you would need to work PAYE."

I can refer you to the Umbrella company I get paid through. They charge ONLY £ 5.60 per 12 hour shift as Administration fee (no weekly fee, no other compulsory fee, just this amount and ONLY when you do a locum shift for a DAY). NO other charges whatsoever. There are many Umbrella companies who will charge you on a weekly basis (wether you do extra work or not, this one doesn't!)

Send me a message on my inbox here and I will recommend you to the Umbrella company I work under. Additional information about a voucher for poster if you join removed.

Hi, I'm exactly in this position, but I'm struggling to find the umbrella company you are talking about. Could you possibly PM me the company you're using please?

[CR001]

Hi, I'm exactly in this position, but I'm struggling to find the umbrella company you are talking about. Could you possibly PM me the company you're using please?

This topic is 2.5 years old. Kindly start your own topic with your circumstances rather than digging up old threads which clutter the current questions in the forum.

You also do not have the privilege of the PM function as a newly registered member.