Self-Employed Locum Pharmacist Tax Guide for 2026: Step-by-Step Filing

Navigating the world of locum work offers incredible flexibility and diverse professional experiences. However, with the freedom of self-employment comes the responsibility of managing your own finances and taxes. For many locum pharmacists, the annual Self-Assessment tax return can seem daunting.

This guide is designed to demystify the process for the UK tax year 2025-2026 (which runs from 6th April 2025 to 5th April 2026). We'll provide a clear, step-by-step approach to ensure you're prepared, compliant, and can file your tax return with confidence.

Disclaimer: This article provides general guidance and should not be considered professional tax advice. Tax laws are subject to change, and individual circumstances vary. It is always recommended to consult with a qualified accountant.

Step 1: Get Registered and Understand the Deadlines

Before you can file, you must be registered as self-employed with HM Revenue & Customs (HMRC).

• Registration: If this is your first year as a self-employed locum, you must register for Self-Assessment by 5th October 2026. You can do this easily online through the GOV.UK website. Failing to register on time can lead to penalties. Once registered, you'll receive a Unique Taxpayer Reference (UTR) number, which you'll need for your tax return.

• Key Deadlines for the 2025/26 Tax Year:

  • Tax Year: 6th April 2025 – 5th April 2026

  • Registration Deadline: 5th October 2026

  • Paper Tax Return Deadline: Midnight, 31st October 2026

  • Online Tax Return Deadline: Midnight, 31st January 2027

  • Tax Payment Deadline: Midnight, 31st January 2027 (for both the balancing payment for 2025/26 and your first 'Payment on Account' for 2026/27)

  • Second Payment on Account Deadline: Midnight, 31st July 2027

Given the convenience and later deadline, filing online is the preferred method for most people.

Step 2: Meticulous Record-Keeping is Non-Negotiable

The golden rule of self-employment is to keep immaculate records. This not only makes filing easier but is also a legal requirement. HMRC can request to see your records for up to six years after the tax year they relate to.

• Track Your Income (Invoicing): Keep a detailed log of every invoice you issue. Use a spreadsheet or accounting software to record:

  • Invoice date and number

  • The pharmacy/company you worked for

  • The dates you worked

  • The gross amount you charged

  • Date payment was received

• Track Your Expenses: This is where you can significantly reduce your tax bill. Keep every receipt and bank statement related to your business. A good practice is to use a separate bank account for your locum business to avoid mixing personal and business transactions.

Step 3: Know Your Allowable Expenses

As a self-employed individual, you are taxed on your profits, not your total income. Profit is calculated as:

Here are common allowable expenses for a locum pharmacist:

• Professional Fees & Subscriptions:

  • General Pharmaceutical Council (GPhC) registration fees

  • Royal Pharmaceutical Society (RPS) membership

  • Pharmacist Defence Association (PDA) or other indemnity insurance premiums

  • Subscriptions to relevant professional journals (e.g., The Pharmaceutical Journal)

• Travel & Subsistence:

  • Mileage: You can claim a flat rate for using your own vehicle for business travel (to and from different pharmacy locations, but not to a permanent workplace). For 2025/26, the approved mileage allowance is typically 45p per mile for the first 10,000 miles and 25p thereafter. Keep a detailed mileage log.

  • Other Travel Costs: Public transport fares (trains, buses) and parking fees for business journeys.

  • Subsistence: The cost of reasonable meals and accommodation if you have to stay overnight for work.

• Equipment & Office Costs:

  • Stationery: Diaries, logbooks, pens, etc.

  • Equipment: The cost of essential equipment like a fob watch or reference books. For larger items like a laptop, you may need to claim 'capital allowances'.

  • Use of Home as Office: You can claim a simplified flat rate depending on the hours you work from home each month, or you can calculate a proportion of your actual household bills (e.g., a percentage of your heating, electricity, and internet based on the room you use as an office).

• Training & Development:

  • Costs for courses and Continuous Professional Development (CPD) that maintain or update your existing skills as a pharmacist. You cannot claim for training that provides you with a new skill (e.g., a degree to become an independent prescriber if you weren't one before).

• Other Costs:

  • Accountancy Fees: The cost of hiring an accountant to help with your tax return.

  • Bank Charges: Fees associated with your business bank account.

Step 4: Calculating Your Tax Liability

Once you have your taxable profit figure, HMRC will use it to calculate your tax and National Insurance liability.

• Income Tax: Your taxable profit is added to any other income you may have (e.g., from property or another PAYE job). You will pay Income Tax based on the prevailing tax bands for the 2025/26 year. Remember, you still get your Personal Allowance.

• National Insurance Contributions (NICs): As a self-employed person, you will typically pay two types of NICs:

  • Class 2 NICs: A flat weekly rate, payable if your profits are over a certain threshold (the Small Profits Threshold).

  • Class 4 NICs: A percentage of your annual profits between a lower and upper profits limit.

Rates and thresholds are confirmed annually by the government.

Step 5: Filing Your Self-Assessment Tax Return Online

With your records organised, you're ready to file.

1. Gather Your Information: You will need your UTR number, records of all your income, and a summary of your total allowable expenses, broken down by category.

2. Log In to the HMRC Portal: Access the Self-Assessment service on the GOV.UK website using your Government Gateway user ID and password.

3. Tailor Your Return: The online form will ask questions to determine which sections you need to complete. You will need to indicate that you are self-employed.

4. Complete the Self-Employment Section (SA103): This is where you enter your business details.

   • Enter your total turnover (your gross income from all locum work).

   • Enter your total allowable expenses. You don't need to list every single receipt, but you will need to input the total figure for each expense category (e.g., 'Travel Costs', 'Professional Fees'). The online form simplifies this process.

5. Declare Other Income: If you have income from other sources (e.g., a part-time PAYE job, savings interest, dividends), you must declare it in the relevant sections.

6. Review the Calculation: The online system will automatically calculate your tax and National Insurance liability based on the figures you've entered. It will show you exactly what you owe.

7. Submit Your Return: Double-check all the figures and declarations. Once you are happy that everything is accurate, submit the return. You will receive an instant confirmation.

Step 6: Paying Your Tax Bill

After filing, the final step is to pay what you owe by the 31st January 2027 deadline. You can pay via the HMRC website using a debit card, through online banking, or by setting up a Direct Debit.

Remember to also budget for your Payments on Account. These are advance payments towards your next year's tax bill, each being 50% of your previous year's bill. The deadlines are 31st January and 31st July.

By staying organised and following these steps, you can manage your tax obligations efficiently, ensuring you are compliant and only paying what you owe. Happy filing!