If you’re working as a locum vet or veterinary nurse, one of the first big decisions you'll face is how to get paid. Two of the most common options are through an umbrella company or as a self-employed sole trader. Each has its own pros and cons depending on your situation, especially if you're new to the UK or planning to locum long-term.

Let’s break it down and help you figure out what might work best for you 👇

 💼 Umbrella Company – The Hassle-Free Option

An umbrella company acts as your employer. You submit your timesheet to them, they invoice the practice, deduct tax and National Insurance, and then pay you your wages.

✅ Pros:

• Stress-free admin: Great if you’re just getting started or don’t want to deal with the headache of bookkeeping and tax returns.

• Ideal for short-term locums: If you’re coming to the UK for a few months or doing occasional shifts, it’s a simple, compliant setup.

• PAYE deductions handled for you: Tax, National Insurance and holiday pay are all sorted – no end-of-year tax surprises.

• Useful for overseas locums: Navigating UK tax rules can be tricky, especially when it’s all new – umbrella takes care of it.

• Professional insurances often included: Some umbrella companies include public liability and professional indemnity cover in their fee.

• Often required by corporates: Due to IR35 compliance, some practices – especially larger corporates – only work with umbrella-registered locums to ensure everything is above board.

❌ Cons:

• Less take-home pay: After the umbrella margin (a fee they charge) and PAYE deductions, your earnings might be lower than self-employed.

• Limited control: You can’t claim many expenses, and you’re treated as an employee for tax purposes – even if you work like a freelancer.

• You're still responsible for some paperwork: Such as making sure you're working within IR35 rules and keeping track of your assignments.

💡 What to bear in mind when choosing an umbrella company

Some umbrella companies charge a weekly fee, while others may have a percentage-based margin – so it’s worth comparing a few and asking about hidden costs (like setup fees or charges for issuing P45s).

If you’re locuming regularly, it might be worth choosing an umbrella company that includes public liability and professional indemnity insurance, so you don’t have to organise these separately.

🧾 Self-Employed (Sole Trader) – Greater Freedom and Potential Earnings

As a sole trader, you work for yourself and invoice practices directly. You’ll need to register with HMRC and complete an annual Self Assessment tax return.

✅ Pros:

• More take-home pay (potentially): You may pay less tax overall, depending on your income and expenses.

• Claim business expenses: Travel, CPD, equipment – these can be deducted from your taxable income.

• Greater flexibility: You choose how and when you work, and you’re fully in control of your finances.

❌ Cons:

• You’re responsible for everything: Invoicing, tax returns, NI contributions, keeping records – it’s all on you.

• Accountant recommended: Most locums choose to pay for a professional accountant to make sure everything’s done properly.

• May not suit short-term locums: If you’re only planning to work for a few months, the effort of registering and deregistering may not be worth it.

• Can impact IR35 compliance: If you're working in a way that resembles employment (e.g. set hours, limited autonomy), you may fall inside IR35, which could affect whether certain practices will work with you in a self-employed capacity.

🔍 So… Which One Should You Choose?

It really depends on your goals and how long you plan to locum in the UK:

🧳 Just visiting or short-term work?
An umbrella company might be best. You’ll have less paperwork, support with tax, and peace of mind that things are being done properly – especially if you’re new to the UK.

📅 Planning to locum for the foreseeable future?
Going self-employed could mean more money in your pocket and full control of your working life. Just be ready to keep records and consider hiring an accountant to help with the admin.

🏥 Planning to locum for corporate practices?
Check their payment structure before committing. Some corporates (like CVS, Vets4Pets or Medivet) may only accept umbrella companies to ensure IR35 compliance, especially if you’re working on longer or regular contracts.

📊 From our experience...
Many locum vets and nurses are currently opting for the sole trader route, as it often results in more take-home pay and greater flexibility. That said, every situation is different, so it’s important to think about your own goals, how long you’re planning to locum, and how comfortable you are with managing your own admin.

⚖️ Still not sure?
It might be worth speaking to an accountant or recruiter who understands the veterinary locum world. The right option for you might even change over time – some start with umbrella for ease, and later switch to self-employed as they settle in.

💬 Need help finding locum work or want to chat through your options?
We’re always happy to help – whether you’re a vet or vet nurse, new to locuming or just considering your next move. Reach out for a friendly chat and some honest advice.

🛡️ Please note: This blog is intended as general guidance and reflects information available at the time of writing. Payment structures and tax rules can change, so it’s always a good idea to check the latest HMRC guidance or consult a qualified accountant if you're unsure about what’s right for you.