Locum pharmacist expenses: what you can claim

Self-employed locums pay tax on profit, so every allowable expense reduces the bill: at the basic rate, £100 of expenses saves £26 in income tax and National Insurance, and at the higher rate £42. The test HMRC applies is that the cost is wholly and exclusively for your work. Something used partly privately, such as your phone or car, can be claimed for the business share only.

Professional costs

• GPhC registration fee. The GPhC confirms that tax relief is available on the annual renewal fee.
• Professional indemnity cover that you pay for yourself.
• Professional memberships on HMRC's approved list (List 3). The Royal Pharmaceutical Society and the Pharmacists' Defence Association are both on it.
• Training and CPD. HMRC allows courses that update your existing skills or add new expertise in the work you already do. Training to move into a different line of work is not allowable.
• Reference books and resources for your work, such as your own BNF.

Travel

• Mileage to pharmacies, if the conditions are met: see locum pharmacist mileage.
• Train and bus fares and parking on business journeys. Parking fines are not allowable.
• Hotels and meals when a booking means staying away overnight. Your everyday lunch on a normal shift is not allowable.

Running the business

• Phone and internet, the business share.
• Working from home on admin: HMRC's flat rate is £10 a month for 25 to 50 hours, £18 for 51 to 100 hours and £26 for 101 hours or more. Or claim a proportion of actual costs.
• Accountancy fees and bookkeeping or invoicing software.
• Bank charges on a business account.
• Equipment such as a laptop or printer used for the business, again the business share if also used privately.

Not allowable

• Everyday clothes, even if you only wear them to work.
• Ordinary meals during a normal working day.
• Travel to a regular place of work that is effectively your workplace.
• Fines and penalties.
• Your own tax, National Insurance and student loan repayments.