Limited company Health and Social Care Consultant

With the NSPCC reporting a 47% increase in new cases over the past year (2013 – 2014) alone, it comes as no surprise that the government are leaning on contractor and locum Health and Social Care Consultants to take the pressure off overstretched departments.

According to a 2014 report by the Department of Health, the number of people with complex health issues is set to increase in the coming years, with local councils being given over £2.7 billion to meet this rising demand.

Our guide to becoming a Limited company health and social care consultant lists the pros and cons of contracting, advice on finding work in this sector and what the most tax efficient way of contracting is.

Finding work as a Health and Social Care Consultant

Health and social care consultants play a vital role in communities providing both physical and emotional support to vulnerable children, young people, adults and the elderly. Within these age groups there are endless opportunities as to the type of sectors you could contract within, such as:

  • Adoption
  • Children’s services and protection
  • Young offenders
  • Mental health
  • Adults with learning disabilities
  • Hospital discharges
  • Drug and alcohol abuse
  • Homeless people

To find work in the health and social care industry you may already have existing industry contacts, if not, the best place to start is through an agency that specialises in locum health and scocial care work. It is worthwhile dealing with just one or two agencies at any one time ensuring you build up a strong relationship with those agencies, to ensure they recommend you for the best roles. Here are some specialist recruitment agencies that you may find useful:

  • Liquid Personnel – A specialist social care recruitment agency placing candidates in local councils, fostering and adoption agencies, NHS Trusts, charities, private and not-for-profit organisations.
  • Eden Brown – Eden brown list social care amongst their areas of expertise and place candidates in roles ranging from Care Assistants, Social Workers to Regional Managers.
  • Sanctuary Social Care – An award winning recruitment agency that has been operating since 2002, Sanctuary Social Care place qualified health and social care professionals in positions all over the UK.
  • Synergy Group – Founded in 1997, Synergy Group place health and social care consultants in public and private sector roles nationwide.

For more hints and tips on finding work as a contractor, download our free Guide to finding work as a Contractor here. You may also find our Contractors Career Centre useful, for advide on: Writing your CV, Top 5 CV Tips and Interview Strategies part 1 and part 2.

Rates of pay

Health and social care consultancy is not seasonal or region specific so there is always demand for their services. Naturally rates of pay will depend on the area you work in and your level of experience. Below is a rough guide of the daily rates you could expect to earn as a contractor (based on 2014 availability).

  • Social Worker - £220 per day
  • Senior Social Worker - £240 per day
  • Manager - £300 per day
  • Department Director – up to £600 per day

Contractors can easily earn double to that of a permemant employee. Our Getting the best rates as a Contractor article stems form our Life as a a Contractor case studies hub. Included in the article are top tips on negotiating the best rates as a contractor, from the point of view of one of our 15,000 contractor clients.

For case studies on various other subjects visit our Life as a Contractor hub. 

Advantages of becoming a Health and Social Care Consultant

A recent survey conducted by the Office for National Statistics has revealed that the number of contractor workers in the ‘Human Health and Social Work’ sector has increased by 17% from 2012 to 2014. As well as offering a flexible employment solution for organisations and councils, locum heath and social care consultants can implement change and potentially rejuvenate areas in a short space of time.

There are many advantages to becoming a contractor, including:

  • Higher take home pay - as a contractor you can easily command higher rates than as a permanent employee – this is due to the fact that companies do not have to pay for your NI and any additional perks that permanent employees receive.  
  • Industry expert – your clients will view you differently and so you will be treated differently. Rather than your boss considering you a number within the company, just an employee, you are bought into the company as the skilled expert. 
  • Working in a variety of sectors and roles - as a contractor you have the choice to test out various other roles and sectors which will not only enhance your personal development, but provide you with a wide ranging set of skills in your CV.
  • Lucrative long or short term contracts – quite simply, as a contractor you can pick and choose how long and where you work. In SJD’s latest contractor attitude survey over 90% of those surveyed said that they had a better work life balance as a contractor than as a permanent employee.  

For a more comprehensive guide on the pros and cons of working as a contractor then please visit our benefits of contracting page.

Once you have secured your first contract you will then need to decide on the most tax efficient way of operating.

Limited Company or Umbrella Company?

The two most common ways to operate as a contractor is as a director of your own Limited company or by using the services of an umbrella company. Naturally there are various factors to consider before making that decision, such as, how much will you be taking home from your contract, how long will you be contracting for, are you happy to handle your own administration work, to name a few. 

Contracting through an umbrella company means you will essentially become an employee of that company - they will pay your salary to you with tax and national insurance deducted. Umbrella companies are easy to use and provide an ideal option to those that are only going to be contracting for a short time (usually 3 months or less) and only expect to be taking home around £25,000 a year. Using an umbrella company however can be the most expensive way of contracting because your salary is subject to full PAYE tax and national insurance - the same way that a full-time employee’s would be. 

Working through your own Limited company is the most tax efficient way to operate and is recommended to those expecting to earn £25,000 or more annually. Through your own Limited company you can expect to take home between 75% to 80% of your contract rate, as opposed to approximately 60% to 65% if you were working through an umbrella company. Visit our contractor calculator page and simply enter your expected daily or hourly rate to see how much, on average, you could take home through your own Limited company.

Working through a Limited company also gives you the added benefit of being able to claim business costs such as accountancy fees, travel etc. as a company expense, which are exempt from tax. With a Limited company there is a small amount of paperwork you will incur, however our 15,000 clients tell us on average this takes them between 10 - 15 minutes per month. 

Naturally there are pros and cons to both styles of contracting, for a more comprehensive understanding, visit our Limited company vs Umbrella company guide for more information. You may also find our Take home pay – Limited company or Umbrella company guide useful.

If you have decided that working as a Limited company contractor is the right option for you. Or if you have previously used the services of an umbrella company and think that going Limited will be more beneficial, then you will be pleased to find out that forming a Limited company is probably much simpler than you think.

Forming a Limited Company

Forming a Limited company is surprisingly straightforward and takes just a few easy steps:

  • The first thing you need to decide upon is your company name. Check if your company name is available by using our free company name checking tool.
  • Once you have your company name, simply complete our online company formation form, which takes approximately 5 minutes.
  • It will take approximately three hours (during regular business hours) for the formation to pass through Companies House and then you can start trading.

SJD's Limited company formation package is designed to make forming your company as straightforward as possible. Our package includes; organising your business bank application details, VAT and PAYE registration information and advice on the optimum share structure of your company.  

When forming a Limited company it is essential to ensure that you are forming a genuine Limited company as there are lots of marketing operations in place that claim to be able to reduce your tax bill considerably. Remember if it sounds too good to be true then it probably is.

However tempting these schemes may seem remember that if you are working in the UK then you should be paying tax in the UK. For more information about these procedures and the potential risks involved please click here.  

To ensure that you are making the most of the benefits available to you it is a good idea to appoint an accountant to look after your accounts.

Choosing an Accountant

Finding the right accountant is essential as it could save you time and money. When choosing an accountant check if they are qualified by an accredited accountancy body and that they are contractor specialists. Our what will an accountant do for me guide provides a detail breakdown on exactly what the benefits are of having an accountant and how they can ensure you are working in the most tax efficient way possibly. 

SJD Accountancy is the UK’s largest provider of fixed fee Limited company accountancy packages. We have been providing accountancy services to contractors, freelancers and small to medium sized businesses since 1992 and we currently have over 15,000 clients.  

How can SJD help?

SJD Accountancy are the UK's largest accountants to contractors. We offer a nationwide, all-inclusive fixed fee accountancy package priced at just £120 + VAT per month. Our service includes:

  • Year-end accounts*
  • Corporation tax
  • Payroll bureau
  • Dividend administration
  • Dealing with HM Revenue and Customs and Companies House
  • Quarterly VAT Calculations 
  • Support with Annual Returns
  • Personal Taxation
  • Access to your own dedicated accountant* for all help and advice
  • Free bookkeeping software

Click here to become a client of SJD's today. 

If you would like to make the change to working as a Health and Social Care Consultant contractor then our New Client Services team would be happy to answer any questions that you may have on working as a contractor and forming your own limited company. Please feel free to get in contact on 01442 275789 or email newbusiness@sjdaccountancy.com

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SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
  • Money back service guarantee. All your Emails received by 4pm on any normal working day will be answered the same day. Should it be necessary to leave a telephone message it will be answered same day/following day latest or we will make a full refund of that months fee.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee starting from £120 plus VAT per month. Check our packages for more detail.

If you have any questions about contracting or would like any further advice please call our new business team on 01442 275789 or email: newbusiness@sjdaccountancy.com. Our new business team is open Monday to Thursday (8am to 8pm), Friday (8am to 7pm) and Saturday (10am to 4pm)

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.