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GP Continued Providing Locum Services Through Agency And Not His Company

By Mark McLaughlin, January 2018
A GP who supplied locum services on a self-employed basis to an agency was held to have continued doing so, despite having purportedly incorporated his business, and he therefore remained subject to income tax and Class 4 NICs. 

The appellant, a GP, commenced work as a self-employed locum with an agency on 1 April 2006. The arrangements, which were contractual, continued for two years. During that period, payments were made by the agency to the appellant’s personal bank account. Invoices were not originally required. All costs and expenses were made out of the appellant’s personal account.

The appellant’s accountants advised him to incorporate his business, and a company (KSMM) was incorporated on 31 March 2008. The appellant and his wife were the shareholders and directors. From 1 April 2008, the accountant prepared accounts and submitted company and personal tax returns on the basis that the company was
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