When ill-health causes 
financial and tax problems

30th June 2016 by Liz Densley

When ill-health causes 
financial and tax problems

Ill-health can lead to financial stress and disorganisation. Accountant Liz Densley explains how can you minimise this.

Before ill-health strikes:

  1. Know what sick pay you are entitled to – either from your employer or via your insurances (see Kevin Walker’s detailed article on this topic.)
  2. Know what your basic living costs are and try to ensure you build up at least 6 month’s worth to tide you over if you are unable to work.
  3. Organise your finances so major bills are paid by direct debit, so you are less likely to forget to pay them while unwell (but do try to check bank statements regularly still and ensure there’s enough money in the current account to pay them)
  4. Keep your accounting records up to date at all times.
  5. Make sure you put away money for your tax as you earn it.
  6. Understand your mortgage: what flexibilities do you have, can you take a repayment holiday? Can you overpay to create a buffer you can effectively use to cover future payments?

Keeping paperwork up to date

Invoice practices immediately on completing the work, and deal with the pension forms at the same time to reduce the risk of getting behind.

Keep important documents scanned and in a folder for your accountant (or just keep paper in an envelope), so you don’t have to hunt things out at the year end.

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"LocumDeck is so good and so intuitive that I am lost for words and utterly filled with glee.

It can send an email confirming the sessions that are booked and creates and emails invoices direct to the practice for you. These contain links to your beautifully laid out ‘credentials’ page with all your relevant documents, and a model contract that is all ready for you to accept or edit.

It automatically produces and sends the locum form A, and will produce locum form B. It also acts as the calendar... And it all happens automatically. It is really less than a minute to invoice and do the pension forms, with everything calculated perfectly."

Dr Annette Steele

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