A limited company changes the legal and accounting context of locum work, but not the need for accurate session, contract, invoice, payment and expense records. The right structure depends on your circumstances and should be agreed with an accountant.
This guide explains the day-to-day evidence a GP locum should keep when a company supplies work. It focuses on administration rather than promoting incorporation or giving individual tax advice.
A practical workflow for keeping records current.
How this feature fits into the wider airGP workflow.
A company can be a valid trading structure, but it does not automatically make every engagement tax-efficient, outside off-payroll rules, pensionable or commercially sensible. Before incorporating, compare the additional accounts, payroll, Companies House, corporation-tax and banking administration with the expected benefit. An accountant who understands healthcare contractors can model the position using your actual income, other NHS work, pension choices and drawings.
For each booking, establish who is contracting with the practice: you personally or your company. The engagement letter, booking confirmation, invoice identity and bank receipt should tell a consistent story. If an agency, practice or public-sector body makes a status determination, keep it with the contract rather than trying to infer the answer later from the invoice.
The practical difference is separation. A sole trader and the business are the same legal person; a company is separate from its director and shareholder. Company money is therefore not simply personal money. Fees should be invoiced by the entity that performed the engagement, paid to the appropriate account and extracted using a method your accountant has advised.
This table is an administrative comparison, not a recommendation. Tax outcomes depend on current rules and individual facts.
| Area | Sole trader | Limited company |
|---|---|---|
| Invoice identity | Individual or trading name | Registered company name and required company details |
| Money received | Business income of the individual | Company income, kept distinct from personal funds |
| Owner payments | Drawings are not a business expense | Salary, dividends, expenses or director-loan movements need correct treatment |
| Tax records | Self-employment records feed Self Assessment/MTD as applicable | Company accounts and corporation-tax records; director may also need personal returns |
| Administration | Usually simpler | Statutory accounts, confirmation statement and additional governance |
| NHS pension | Depends on the work and scheme rules | Do not assume company-traded income is pensionable; verify the applicable NHS process |
The most useful record starts before the invoice. Retain the organisation's correct legal name, work location, session date, agreed rate, hours or duties where relevant, cancellation terms, reimbursable expenses, pension arrangement and purchase-order or booking reference. After the session, note any agreed variation while it is still easy to evidence.
airGP can keep the session, organisation, fee, expenses and pension context together, then use those records in invoicing, earnings summaries and exports. It also supports document management for files you need to retain. The software provides organisation; it cannot decide whether a contract term is effective or whether an expense is allowable.
A company invoice should identify the company correctly and include the statutory and commercial details relevant to it. Use a unique sequence, dated work lines, clear totals, payment terms and company bank details.
Record an expense only with the business purpose and evidence needed for review. Mileage, professional costs, equipment and other spending can have different tax treatment, and reimbursement by a practice is distinct from a deduction claimed by the company. Reconcile each bank receipt to the specific invoice; the invoice date, work date and paid date answer different questions. airGP records session and payment history, mileage and expenses, but the final accounting treatment belongs in the company books.
NHS pension treatment is not determined by an invoice label. The organisation, contractual route, nature of the work and relevant scheme process matter. airGP can record Form A and B, GP SOLO and No Pension contexts within the locum workflow, but it does not determine pensionability or submit a status decision for you. In particular, do not assume that income traded through a limited company can be handled like personally supplied freelance locum income.
IR35 and off-payroll working are also engagement-specific. A company does not guarantee that an engagement is outside the rules. Keep the written contract, actual working-practice evidence, any status determination and correspondence about it. Seek specialist advice if the contractual wording and day-to-day arrangement differ.
At month end, compare the calendar with completed session records, then compare those sessions with issued invoices. Review unpaid invoices and email history, reconcile receipts to paid dates, and check expenses and mileage for missing evidence. Save relevant documents using a consistent name and export the period's records before correcting any anomaly.
This routine is where airGP adds practical value: the calendar, organisations, sessions, invoices, payment status, reminders, earnings, pension context, mileage, expenses and exports are connected. Your accountant receives a structured record plus the underlying evidence instead of a year of unexplained bank lines.
Frequently asked questions
There is no universal answer. Ask an accountant to compare the structure using your expected profits, other income, pension position, engagements and administrative costs. airGP supports record keeping whichever structure you use; it does not recommend incorporation.
Yes. airGP can organise sessions, organisations, invoices, payments, mileage, expenses, documents and exports. Configure and review invoice information for the entity actually supplying the work.
No. Status depends on the engagement and applicable off-payroll rules, including the contract and actual working practices. Keep determinations and obtain specialist advice where needed.
Do not assume so. NHS pension eligibility and process depend on the work and contractual route. Confirm the current position with the relevant NHS pension authority or a suitably qualified adviser.
Provide reconciled invoice and payment records, expense and mileage data, bank information, payroll or drawings information handled in the agreed way, and supporting documents for unusual transactions.
No. airGP organises GP locum operational and bookkeeping source records and provides exports. It does not prepare statutory company accounts, run corporation-tax advice or replace accounting software and an accountant.