![]() There has always been a variety of tax planning structures available for locum doctors. However, the range of structures available was reduced recently when the provision of loans from an Employee Benefit Trust (EBT) was disallowed by the Treasury effective from 9th December 2010. Such solutions using EBT loans were attractive to locum doctors and other contractors because they could typically attain a net return on earnings in excess of 80%.
Consequently, the options for a locum doctor to maximize his net earnings have now been eroded leaving two main choices, an umbrella company, or his own limited company (IR35 restraints permitting).HOWEVER, a new tax planning structure is now available to locum doctors which provides the following benefits:
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