Choosing the Best Work Structure for Psychology and Therapy Locum Positions
Navigating the professional landscape in psychology and therapy in the United Kingdom requires careful consideration of how to structure your work, especially when dealing with EHCP (Education, Health and Care Plan) work, statutory work, and roles with schools and local authorities.
At Kaerus Recruitment, we recognise that making the right choice can be challenging. Therefore, we provide expert guidance and support across all three main options: working through a Limited company, being self-employed, or operating through an umbrella company.
No matter your choice of the work structure, we handle compliance and paperwork efficiently, so you can focus on your work. Plus, with our streamlined timesheet system and fast payments, you stay on top of your game effortlessly.
Working Through a Limited Company
Operating through a Limited company involves setting up a separate legal entity for your business activities. As the director, you’ll handle contracts, finances, and other professional responsibilities within this structure.
Advantages
- Tax Efficiency: Potential for tax benefits by drawing a combination of salary and dividends.
- Control Over Finances: Greater control over income and expenses.
- Professional Image: A Limited company can enhance your professional image, which is beneficial for contracts with schools and local authorities.
Disadvantages
- Administrative Burden: Managing a Limited company involves handling paperwork, filing annual accounts, and complying with regulations.
- Initial Setup Costs: Costs include registration fees and potentially hiring an accountant.
Example
An educational psychologist who opted to operate through an Ltd company enjoyed significant tax benefits and a stronger professional image, particularly valuable when securing high-profile contracts with schools and local authorities. Despite the complexities of managing administrative tasks and additional accounting costs, the advantages outweighed the challenges.
Interested in how this might benefit you? Book a call with Kaerus Recruitment to explore how we can help you navigate this option with ease, and benefit from our compliance and paperwork assistance.
Working as a Self-Employed Individual (sole trader)
Being self-employed means operating independently without a separate legal entity. You handle all business activities and finances personally.
Advantages
- Simplicity: Easier management with minimal administrative work.
- Direct Control: Complete control over your work and business decisions.
Disadvantages
- Higher Tax Burden: Potentially higher tax rates compared to operating through a Ltd company.
- Lack of Limited Liability: Personal responsibility for any debts or liabilities.
Example
A self-employed therapist enjoys the freedom and simplicity of managing their own business. They find it straightforward to handle finances and appreciate the autonomy, especially when working on EHCP and statutory cases. However, they must manage the higher tax burden and personal liability that comes with this work structure.
Want to see if this option fits your needs? Book a call with Kaerus Recruitment to get tailored advice and support, ensuring you’re fully equipped with our compliance and paperwork assistance.
Working Through an Umbrella Company
An umbrella company acts as an intermediary between you and your clients. You are technically an employee of the umbrella company, which handles payroll, taxes, and other administrative tasks.
Advantages
- Simplified Administration: The umbrella company manages administrative tasks, reducing your workload.
- Employee Benefits: Access to benefits like holiday pay and sick leave, which is valuable for roles with schools and local authorities.
Disadvantages
- Lower Take-Home Pay: Fees and tax deductions can reduce your net income.
- Less Control: Limited control over financial management.
Example
A therapy professional working through an umbrella company appreciated the reduced administrative burden and access to benefits like paid leave. This was especially useful for managing EHCP and statutory work. However, they found their take-home pay to be lower than with other work structures.
Curious about how this might work for you? Book a call with Kaerus Recruitment for expert guidance and enjoy our fast payments and efficient timesheet system.
Why Choose Kaerus Recruitment?
At Kaerus Recruitment, we’re more than just another agency; we’re founded by experienced professionals who truly understand the psychology and therapy market.
Our dedicated team provides comprehensive support with compliance and paperwork for all work structures, ensuring these tasks are both fast and minimal. As a result, you can focus on what you do best—delivering exceptional services—without being bogged down by administrative tasks and document submissions. Additionally, our state-of-the-art timesheet system and rapid payment processing ensure you are consistently paid on time, allowing you to concentrate fully on your core work.
Conclusion
Choosing the right work structure for your career in psychology and therapy is crucial, especially when working with schools, private organisations, and local authorities. To make this decision easier, we’re here to guide you through every step. For a thorough assessment and personalised advice, book a call with Kaerus Recruitment or contact us today. Our team is ready to help you navigate these options and find the best solution for your needs.
Director and Head of Recruitment at Kaerus Recruitment, Ivan specialises in Educational Psychology and Therapy roles across the UK. With over 5 years of experience and a proven track record in recruiting within the psychology and therapy sector, he connects HCPC-registered professionals with the right opportunities.
