Veterinary Locums · Healthcare Locums · Updated July 2026
✓ HMRC-sourced

Making Tax Digital for Veterinary Locums —
Agency, Practice-Direct & IR35 Explained

📅 30 July 2026 ⏱ 7 min read Editorial policy ↗

Agency-Booked and Practice-Direct Work Are Taxed the Same Way

Locum vets and veterinary nurses typically work through a mix of specialist locum agencies (who take a margin before paying you a day rate) and direct arrangements with individual practices. Agencies usually pay you the net rate after their margin, so what actually lands in your account from an agency booking is your income from that job — there's no gross-up needed. Every practice and agency payment, however sourced, combines into a single qualifying income figure.

IR35 Is a Separate Question From Your MTD Position

Locum vets working through their own limited company need to consider IR35 status separately from MTD — these are two distinct sets of rules. If you're genuinely self-employed (not operating through a limited company), IR35 doesn't apply to you at all, and your MTD position is assessed the same way as any sole trader: total qualifying income from your most recently filed Self Assessment return.

Worked Example

Iris. Self-employed locum vet working through two specialist agencies plus a direct arrangement with a small independent practice.

Agency-booked locum shifts (as paid to her, net of agency margin): £31,600
Direct practice arrangement income: £9,800
Total qualifying income: £41,400 — above the £30,000 Phase 2 threshold, below £50,000. Iris joins MTD from April 2027. Because she's genuinely self-employed rather than working through a limited company, IR35 doesn't apply to her arrangements, and her MTD position is assessed as straightforward sole trader income.

What You Can Claim

  • RCVS registration and retention fees
  • Professional indemnity insurance
  • Travel costs between practices at 45p/mile if not reimbursed
  • CPD courses and required ongoing training
  • Professional body membership — BVA and specialist college fees
  • Equipment you provide yourself rather than what's supplied by the practice
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Best MTD Software for Veterinary Locums

Software links are affiliate, help fund CheckMyMTD. Recommendations based on ease of use for self-employed income tracking.

Frequently Asked Questions

Do I need to gross up what locum agencies pay me?

No, agencies pay you the actual amount after their margin, and that's your income from that booking. There's no gross-up adjustment needed for MTD purposes.

Does IR35 affect my MTD position?

IR35 and MTD are separate sets of rules. If you're genuinely self-employed rather than working through your own limited company, IR35 doesn't apply to you, and your MTD position is assessed as standard sole trader income.

I work through several locum agencies. Do I add all their payments together?

Yes, all self-employment income combines into a single qualifying income figure, regardless of how many agencies or practices you work with.

Can I claim my RCVS registration fees?

Yes, professional registration required for your work is a normal allowable business expense.

Does travel between practices count as a business expense?

Yes, if you're not reimbursed by the agency or practice, travel between assignments can be claimed at 45p/mile for the first 10,000 business miles.

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