Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Should You Use a Limited Company as a Doctor? Most Get This Wrong

14 Aug 2026 · 1 min

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In this video, Ndubuisi 'Andy' Egwim examines whether doctors should operate through a limited company for locum or private work. He begins by questioning the common belief that a limited company automatically provides tax efficiency, emphasizing that the first step is to determine if a limited company fits the doctor’s actual working arrangement and if they are eligible to use one. He explains that HMRC does not simply look at the company name; it assesses the real working relationship between the doctor and the payer to decide if the doctor is self‑employed. Consequently, merely registering a company does not exempt the income from the off‑payroll working rules (IR35). Misjudging this distinction can lead to large unexpected tax bills, interest, penalties, and stress, a risk he has observed among doctors. To illustrate the principles, he tells a story about hiring a plumber, using the plumber’s working model as an analogy to clarify how IR35 is applied. The video draws on chapter 5 of his book and aims to provide practical guidance on evaluating the suitability of a limited company and avoiding costly tax pitfalls.

Chapters

As a doctor, should you use a limited company for your locum or private work? I talked about this in chapter 5 of my book, but I'm going to explain it to you. You may have heard that using a limited company could help you be more tax efficient and save more tax, but there is a more important question to answer first. Does a limited company actually fit the way you work? Are you eligible to work through one? I'll explain that in this video because registering a company does not automatically make you self-employed in the eyes of HMRC, and putting income through a company does not automatically take that work outside the off-payroll working rules, popularly known as IRO35. HMRC looks beyond the company name or whatever title your job is. It looks at the real working relationship between you and the organization paying you. So if you get that distinction wrong, you could face a massive unexpected tax bill with interest, penalties, and a lot of stress. And I've seen some doctors fall into it. Let me explain this with an example from my local plumber. A little while ago, I needed some work done at home. Having no DIY skills, I looked at the boiler, I looked at the pipework, and I quickly accepted that I had no idea what I was doing. So I put back my toolbox, which is basically for fancy. I called a plumber, which is a smart thing to do. Now, my plumber didn't give me tax advice, but the way he worked gives us a surprisingly useful way to understand IRO 35.