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Locum Income

Also known as: Freelance Medical Income, Locum Earnings

Definition

Locum income is earnings from temporary medical or professional work, typically paid to self-employed doctors, GPs, or healthcare workers who fill short-term positions or provide cover for absent colleagues.

Understanding how locum income is treated after death is crucial for estate planning, as outstanding payments must be actively collected by your executor and included in your estate valuation.

What Does Locum Income Mean?

Locum income refers to money earned by medical professionals who work temporary positions rather than permanent employment. The term "locum" comes from Latin meaning "place holder" and typically applies to doctors, GPs, pharmacists, and dentists who cover absences or fill short-term vacancies. Under HMRC guidance, locum work can be structured as self-employed income, agency PAYE employment, or through a limited company.

Most locums operate as sole traders, invoicing for their work and handling their own tax returns. Unlike permanent employment, there's no employer payroll system, no death-in-service benefits, and no automatic payment on death. Locum income is typically paid 4-6 weeks in arrears. Dr. Sarah Mitchell, a locum GP, was owed £8,400 across three agencies when she died—her executor had to contact each organisation separately to collect payment.

When you die as a sole trader, your business and personal finances are legally identical. All outstanding invoices and unpaid fees automatically fall into your estate and must be collected by your executor. Your executor needs access to invoicing records, agency contacts, and timesheets to prove what's owed and secure payment.

Common Questions

"Is locum income considered part of my estate?" Yes, any locum income earned but not received becomes part of your estate. Your executor must collect outstanding invoices and include them in estate valuation for probate.

"How is locum income different from employed income for estate planning?" Locum income typically requires active collection after death. Unlike employed income with death-in-service benefits, your executor must contact agencies and practices directly to recover payments.

"Do I need to include future locum bookings in my will?" Future bookings can't be included as they typically end at death. Document current bookings and agency contacts in a letter of wishes so your executor can collect fees owed and cancel bookings.

Common Misconceptions

Myth: Locum income stops being owed when you die.

Reality: Outstanding locum income for completed work is an estate asset your executor must collect. Under UK law, money owed at death becomes part of your estate for probate valuation.

Myth: Agencies automatically pay outstanding locum income to your family.

Reality: Your executor must actively identify income sources and request payment. Unlike PAYE employment with automatic payroll, locum income requires contacting each organisation separately with a death certificate.

  • Sole Trader: The most common business structure for locum professionals, where your business income and personal finances are legally the same and all outstanding earnings automatically form part of your estate.
  • Self-Employment: The employment status that applies to most locum workers, meaning you're responsible for your own tax returns and have no employer death-in-service benefits.
  • Assets: Outstanding locum income is classified as an estate asset (money owed to you) that must be collected and valued during probate.
  • Estate: All your assets including outstanding locum income form your estate, which your executor administers according to your will or intestacy rules.

Need Help with Your Will?

If you work as a locum professional, documenting your income sources and outstanding payments is vital for ensuring your executor can collect everything you're owed. Your will should work alongside a letter of wishes listing your agencies, practices, and access to invoicing records.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete, legally binding will plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.