GP locum expenses: allowable costs, evidence and practical examples

A cost is not deductible merely because it was paid from a business account or appears useful to a doctor. The question is why it was incurred. If the purpose was wholly for the locum trade, it may pass the starting test. If it had both business and private purposes, ask whether a distinct business part can be measured. Record the purpose and any apportionment rather than forcing an answer at purchase.

A GP locum may pay GMC registration, medical indemnity, appraisal or revalidation-related costs and subscriptions such as the BMA or RCGP. These are not one automatic category. Keep the invoice, period covered, business purpose and any reimbursement. Flag mixed membership benefits or use across PAYE and self-employed work for review.

Training that maintains skills already used in the locum business may be treated differently from education that creates a new trade, qualification or specialism. Keep the programme, learning objectives, receipt and a note linking it to current work. Separate private travel or accommodation from the course costs.

Travel is one of the most fact-sensitive locum expenses. A journey between two workplaces in the course of business may be easier to identify than a regular journey from home to a practice. Whether a practice is temporary, part of an established pattern or effectively a base cannot be decided from distance alone. Record every potentially business journey and let the tax treatment follow the facts.

For vehicles, HMRC allows simplified mileage in eligible cases instead of actual running costs. The current simplified rate for cars and goods vehicles is 45p for the first 10,000 business miles in a tax year and 25p thereafter, but method restrictions apply. Do not claim fuel as well as simplified mileage for the same journey. If using actual costs, retain the full calculation and business-use basis.

Parking, tolls, congestion charges and public transport can be separate business costs where the underlying journey qualifies. Parking fines and other penalties are not converted into business expenses simply because they arose during work. A practice reimbursement is a separate accounting event and should be linked to the original cost.

A laptop, phone, printer, stationery or relevant clinical item may support locum work, but cost, expected life and private use affect treatment. Some purchases may be capital. Keep the invoice and use an explainable, repeatable mixed-use method such as itemised calls or a usage review.

Locum administration often happens at home: confirming bookings, preparing invoices, reconciling payments, completing pension records and assembling accountant information. That does not make every household bill deductible. Identify the work activity, time, space and incremental or apportioned cost.

HMRC simplified expenses may provide a flat-rate route for eligible sole traders who work enough hours from home. An actual-cost method needs a reasonable apportionment of relevant costs. Internet and phone claims should exclude or apportion private use. Large or exclusive-use claims can have wider implications, so obtain advice before treating part of the home as permanently dedicated business premises.

Ordinary clothing is usually problematic because it has a private purpose even when bought for work. Protective clothing or a recognisable uniform can differ, but scrubs are not an automatic claim. Keep the receipt, describe use and ask an accountant before including clothing or laundry.

A practice may agree to reimburse parking, mileage, accommodation or another cost. Record the original expense and the reimbursement separately, even where they are equal. The fact that the practice repays £8 does not automatically erase both entries from the business records, and it does not establish the tax treatment of the underlying journey.

Show agreed reimbursements as separate invoice lines with dates and descriptions. Do not hide them inside the clinical fee. This makes approval easier and lets an accountant distinguish turnover, disbursement questions and business costs. If the practice rejects part of a cost, retain the correspondence and final amount.

A bank statement proves that money moved; it rarely proves what was bought or why. Keep invoices, itemised receipts, booking emails, mileage logs, course programmes and reimbursement correspondence. Digital copies are useful if they are legible, complete and stored securely. Add a note before the context is forgotten.

HMRC says self-employed records normally need to be kept for at least five years after the 31 January submission deadline for the relevant tax year, with longer retention in some circumstances. Do not delete source documents merely because figures were exported to an accountant or entered in software. Preserve the final return and the working papers used to reach it.

For mixed costs, store the method as well as the percentage: itemised phone calls, usage time, floor area and time, or business miles compared with total mileage. A reasonable method supported by evidence is more useful than a precise-looking percentage with no explanation.

Agree the format and timetable before year end. Provide reconciled income, bank, expense, receipt, mileage, equipment, pension and PAYE records. Highlight missing evidence, reimbursements, mixed use, uncertain journeys and costs paid personally rather than silently deciding them.

airGP can retain expense and mileage details alongside sessions, invoices, paid dates, pension records and tax exports. Its category is not a tax ruling: review exports, reconcile the bank and obtain accountant advice for your circumstances.