Top Tax Deductions for Locum Pharmacists: What You Can and Can’t Claim

One of the most appealing aspects of being a locum pharmacist is the control it gives you over your finances. However, with the responsibility of managing your own income comes the task of handling your own taxes. The key to maximising your take-home pay lies in understanding exactly what you can claim as a legitimate business expense.

Filing your Self Assessment tax return can be daunting, but knowing your allowable deductions can reduce your taxable profit significantly, lowering your final tax bill. This guide breaks down the most common expenses for locum pharmacists, clarifying what you can—and crucially, what you can’t—claim.

Disclaimer: This guide provides general information and is not a substitute for professional advice from a qualified accountant who can advise on your specific circumstances.

The Golden Rule: "Wholly and Exclusively"

Before we dive in, it’s essential to understand the fundamental principle set by HM Revenue & Customs (HMRC). Any expense you claim must be "wholly and exclusively" for the purpose of your business. If there is a dual personal and business use, you can only claim the business portion.

What You CAN Claim (The "Yes" List)

Keep meticulous records and receipts for these, as they are the foundation of reducing your tax liability.

1. Professional Fees and Subscriptions

These are essential for your right to practice and are fully deductible.

• GPhC Registration Fees: Your annual renewal fee is a core business expense.

• Professional Memberships: Fees for organisations like the Royal Pharmaceutical Society (RPS), Pharmacists' Defence Association (PDA), or the National Pharmacy Association (NPA).

• Trade Journals: Subscriptions to relevant publications such as The Pharmaceutical Journal or Chemist+Druggist.

2. Insurance

• Professional Indemnity Insurance: This is non-negotiable for practice and is 100% tax-deductible.

3. Travel Expenses

As a locum, you will travel between different temporary workplaces. This is not considered 'commuting' and is therefore deductible.

• Mileage: If you use your personal car, you can claim a simplified flat rate from HMRC. As of 2025, this is 45p per mile for the first 10,000 business miles and 25p thereafter. You must keep a detailed mileage log of all business journeys.

• Public Transport: The cost of train, bus, or tube tickets for travel to your locum shifts.

• Parking and Tolls: Any parking fees or road tolls incurred while on business travel.

• Accommodation: If a shift is too far to travel back from, the cost of an overnight stay in a hotel is an allowable expense, along with reasonable subsistence costs.

4. Equipment and Supplies

• Essential Medical Equipment: Items you buy for your work, such as a stethoscope, blood pressure monitor, thermometer, or FOB watch.

• Stationery: Diaries, planners, pens, and paper used for invoicing or record-keeping.

• Protective Clothing: The cost of buying and cleaning specific branded uniforms or lab coats.

5. Office and Administrative Costs

• Use of Home as Office: If you do your administrative work (invoicing, scheduling, CPD) from home, you can claim for this. There are two methods:

  • Simplified Flat Rate: HMRC allows a set monthly amount depending on how many hours you work from home. This is the easiest method.

  • Proportional Costs: A more complex calculation where you work out the business proportion of your actual household bills (e.g., council tax, mortgage interest/rent, utilities).

• Mobile Phone Bill: You can claim the business-use percentage of your mobile phone bill.

• Accountancy Fees: The full cost of hiring an accountant to manage your finances is tax-deductible.

6. Training and Development

• CPD and Training: You can claim for training that maintains or updates your existing skills as a pharmacist. This includes courses, seminars, and workshops relevant to your current role.

What You CAN'T Claim (The "No" List)

It is just as important to know what not to claim to avoid issues with HMRC.

1. Everyday Commuting

While travel to varied locum placements is deductible, if you were to take a long-term contract at a single pharmacy for its entire duration, HMRC may view this as a 'permanent workplace'. Travel to and from that single location would then be considered non-deductible commuting.

2. Everyday Meals

The cost of buying your lunch when working at a local pharmacy is considered a personal living expense and is not allowable. You can only claim for subsistence if you are working away from home overnight.

3. General Clothing

A smart suit, shirt, or shoes that you buy to look professional at work are not deductible. HMRC considers these part of an 'everyday wardrobe', even if you only use them for work. Only specific, branded uniforms or protective clothing qualify.

4. Training for a New Skill or Qualification

The cost of training to gain a new skill or qualification (e.g., the full course to become an Independent Prescriber) is generally considered a capital expense by HMRC and is not deductible. This can be a complex area, so it's best to seek advice from an accountant.

5. Fines and Penalties

Any fines, such as parking penalties or late filing penalties from HMRC, are not allowable expenses.

6. Entertaining

The cost of taking a pharmacy manager or client for a coffee or meal is classed as 'entertaining' and is not tax-deductible.

Conclusion

The key to successfully managing your tax deductions is diligent record-keeping. Use accounting software, a spreadsheet, or a dedicated notebook to log every expense and mile you travel. By understanding what is and isn't a legitimate business expense, you can confidently file your tax return, ensure you are compliant, and keep more of your hard-earned money.

When in doubt, always consult a qualified accountant. Their advice is an investment that can pay for itself many times over.