Latest News

Resources
Newsletters Articles
Understanding Accounts & Taxation VAT
Book-Keeping - Setting Up Financial Systems
Pensions & Superannuation Seminar Notes

Tax Return & Expenses Forms
Personal Expense Claim Form
Locum Expenses Claim form
Rental Income & Expenses Form

 

Who pays the employer's superannuation on locum costs

The cost of using the services of a locum are already expensive, but now practices will also need to pay the cost of the employer’s pension contributions (14%) for locums engaged for more than six months.

 

The NHS pension scheme regulations state that a freelance GP locum is a GP who deputises for an absent GP or assists in the provision of primary medical services on a temporary basis. The GP locum will usually complete GP locum A and B forms and pay their employee’s superannuation to the PCT and the PCT is responsible for paying the employer’s 14%.

 

However, if a practice engages a locum on a long term basis (more than six months) the locum becomes a type 2 practitioner and the practice will be responsible for paying the employer’s 14% pension contributions.

 

Intentions of practices can change, for example a practice may decide to use a locum for a temporary period and then decide to engage the locum for a longer period, likewise a long term locum may be used for maternity cover and not work out. This makes it difficult to decide the status of the locum and who is responsible for the employer’s superannuation.

 

As this is a complex area, the NHS pension agency has agreed with the BMA and DOH the following:-

 

  1. If from the outset it is clear that the locum will be engaged for more than six months at the practice, the GP will be a type 2 practitioner and the practice will be responsible for the cost of the employer’s superannuation from the day one.
  2. If from the outset it is clear the fee based GP will be engaged for less than 6 months at the practice, they are a GP locum in pension terms from day one and the PCT will be responsible for the cost of the employer’s superannuation from day one.
  3. If it is not known how long the GP will be engaged for they are a GP locum in pension terms, however once their engagement hits the six month mark, they will become a type 2 practitioner going forward and the practice will be responsible for the employer’s 14% after the six months.

 

The DOH is aware of the complexities with GP locums and are reviewing the situation.


The above outlines the pension issues regarding locums, it does not cover the tax issues of using long term locums.