I used to be a locum doctor for many years, earning £75 per hour. All was good and fine until IR35 came into place which led to a significant reduction in our earnings, affecting us all and our families. Now 52% of our earnings get deducted because of IR35 legislation.
For example, if the locum rate was £80 per hour with IR35, the amount we are paid into our bank account after all the deductions is £38 (if breaks are not deducted). So, instead of earning £640 on a long 8-hour shift, we are paid £300.
There is no sign that IR35 legislation is going to be stopped. On the contrary, talk emerged that umbrella companies will be the next target and keep in mind your income from umbrella companies can be tracked for many years!
So, what is the solution? How can we earn the same amount of money or even better? Or, even, is there a way we can earn more money with fewer hours’ work?