Payroll in a GP practice is not simply a list of employee salaries.

A single practice can simultaneously deal with:

• salaried GPs
• GP partners
• freelance locums
• practice nurses
• healthcare assistants
• pharmacists
• receptionists
• practice managers
• administrators
• apprentices
• PCN-funded roles
• employees working across more than one site

Some people should be processed through PAYE.

Others may be self-employed.

Some are eligible for the NHS Pension Scheme.

Others need an ordinary workplace pension.

A salaried GP may also earn freelance locum income and need additional NHS pension reporting at the end of the scheme year.

That makes GP practice payroll one of the areas where generic payroll processing can quickly become disconnected from the wider financial and NHS pension responsibilities of the practice.

For practices that want payroll managed within a healthcare-accounting framework, Kudos Accounting provides specialist payroll for healthcare covering GP practices, clinics and larger healthcare organisations.

GP Practice Payroll: The Quick Answer

A GP practice should normally process genuine employees through PAYE, including salaried GPs and employed practice staff.

Self-employed GP locums are not automatically employees simply because they work sessions for a practice. Their employment status depends on the actual arrangement.

Where a salaried GP is an NHS Pension Scheme member, the practice also needs to process the correct NHS pensionable pay and contributions.

A salaried GP generally completes a Type 2 Self Assessment for NHS Pension Scheme purposes, while a freelance GP locum can use Locum Forms A and B for eligible pensionable locum work.

The key principle is:

worker status → payroll treatment → pension treatment → accounting reconciliation.

Getting the first step wrong can make every later step wrong.

GP Practice Payroll at a Glance

Person working in the practice	Normally PAYE?	NHS Pension possible?	Main payroll / pension issue
Salaried GP	Yes	Yes	Salary, PAYE, NIC, NHS pension
GP partner	Not ordinary employee payroll for partnership profit	Yes	Partner pensionable profits / Type 1
Genuine freelance GP locum	Usually outside PAYE if genuinely self-employed	Yes, subject to rules	Locum Forms A & B
Practice nurse	Yes	Depends on scheme eligibility/employer arrangements	PAYE, pension, statutory pay
Healthcare assistant	Yes	Depends on eligibility	PAYE, auto-enrolment/NHS pension where applicable
Receptionist	Yes	Usually workplace pension rather than practitioner pension	PAYE, holiday pay
Practice manager	Yes	Depends on employer/scheme eligibility	Salary, pension, benefits
Pharmacist employed by practice/PCN	Usually yes	Depends on arrangement	Payroll and funding allocation
Agency worker	Usually paid through agency	Depends on actual arrangement	Who is employer?
Contractor	Depends on status	Depends on role	Employment-status review

The table is a starting framework, not a substitute for assessing the actual contractual relationship.

Why GP Practice Payroll Is More Complex Than Normal Small-Business Payroll

A conventional office might employ 15 people on fixed salaries.

Payroll changes are infrequent.

A GP practice can have a much more fluid workforce.

One employee works five sessions.

Another works three days and additional overtime.

A salaried GP has an NHS pension contribution.

A locum submits an invoice.

A nurse begins maternity leave.

A pharmacist’s cost is partially funded through a PCN arrangement.

A new GP is recruited under a reimbursement scheme.

Someone works across two practices.

These situations affect not only payroll but also:

• NHS pension records
• practice accounts
• workforce-cost analysis
• reimbursement claims
• management accounts
• partnership profit

That is why payroll should not sit in isolation.

2026/27 GP Payroll Rates and Figures

The table below gives GP practices a quick reference point for several important 2026/27 payroll figures.

2026/27 payroll item	Current figure
Standard employer NIC rate	15%
Employer NIC Secondary Threshold	£5,000/year
Employee Primary Threshold	£12,570/year
Standard employee NIC rate between PT and UEL	8%
Employee NIC above Upper Earnings Limit	2%
National Living Wage age 21+	£12.71/hour
Employment Allowance	£10,500 where eligible
SSP standard weekly maximum	£123.25 or 80% of AWE if lower
Standard statutory family-payment rate after relevant initial period	£194.32 or 90% of AWE if lower

HMRC confirms the 15% employer NIC rate and £5,000 Secondary Threshold for 2026/27.

For GP practices with large workforces, small changes to payroll rates can have material annual effects.

Salaried GP Pay in England for 2026/27

For 2026/27, the recommended salaried GP pay range in England is:

Salaried GP pay range 2026/27	Amount
Minimum	£78,699
Maximum	£118,759

The range increased by 3.75% from 1 April 2026. (BMA)

This does not mean every salaried GP must automatically receive exactly one of these two amounts.

Actual salary depends on matters including:

• employment contract
• sessions
• experience
• responsibilities
• local arrangements
• contractual uplift provisions

But the national range is an important payroll and workforce-planning benchmark.

For wider accounting and financial issues affecting GP practices, Kudos Accounting also provides specialist GP accountant support.

How Much Does a Salaried GP Really Cost a Practice?

This is one of the most commercially important payroll questions.

A £100,000 salary does not cost the practice only £100,000.

The practice may also have:

• employer National Insurance
• NHS Pension Scheme employer cost
• contractual benefits
• training-related costs
• absence cover
• administrative overhead

Simplified employer NIC example

Assume:

Salary: £100,000

For a standard employee NIC category, employer NIC applies above the £5,000 Secondary Threshold.

Simplified calculation:

£100,000 − £5,000 = £95,000

£95,000 × 15% = £14,250

So employer NIC alone could be approximately:

£14,250

before considering pension costs and any relief that may apply.

This is illustrative only; payroll software should calculate the actual liability.

Salaried GP Cost: Salary Is Only the Starting Point

Cost component	Example / issue
Gross salary	Contracted salaried GP pay
Employer NIC	Generally 15% above applicable threshold
NHS pension	Separate employer contribution requirements
Sick / parental absence	Can affect cover costs
Additional sessions	Need correct payroll treatment
Training / CPD	Depends on employment terms
Locum cover	Can materially increase workforce cost
Payroll administration	Internal or outsourced

This is why practice owners should budget for total employment cost, not salary alone.

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The 2026/27 Practice-Level GP Reimbursement Scheme

The 2026/27 GP contract introduced a practice-level reimbursement scheme designed to support additional GP capacity.

NHS England states practices can use the scheme for qualifying new salaried GPs, qualifying continuation of previously funded GPs and additional sessions from existing salaried GPs. (NHS England)

Key reimbursement figures

Claim type	2026/27 maximum
New / qualifying salaried GP – England	Lower of actual cost or £152,900
London-weighted equivalent	Lower of actual cost or £155,698
Additional salaried GP sessions	Lower of actual cost or £78.41/hour
Additional sessions with London weighting	Lower of actual cost or £79.84/hour

These maximum amounts include relevant salary and employer on-costs specified by NHS England. (NHS England)

That creates an important payroll-control requirement.

If the practice claims reimbursement based on salary and employer costs, payroll information needs to support the claim.

Can GP Practices Claim Employer NIC and Pension Costs Through the New Scheme?

For qualifying claims, NHS England states that the maximum reimbursement figure includes the cost of the GP salary plus employer National Insurance and pension contributions.

The practice therefore needs payroll records capable of identifying those employment costs reliably. (NHS England)

This is an example of why payroll quality directly affects NHS income administration.

Salaried GPs and PAYE

A salaried GP employed by the practice should normally be processed through PAYE.

The payroll needs to reflect:

• gross salary
• tax code
• PAYE Income Tax
• employee National Insurance
• employer National Insurance
• NHS pension deduction where applicable
• other authorised deductions
• net pay

PAYE information is reported to HMRC using Real Time Information.

What Is an FPS and When Must a GP Practice Submit It?

An FPS — Full Payment Submission — reports employee pay and deductions to HMRC.

It normally needs to be submitted on or before payday.

This means payroll needs to be finalised before the practice pays staff.

A good GP payroll timetable works backwards from payday.

Suggested Monthly GP Payroll Calendar

Timing	Payroll action
10–15 days before payday	Collect salary changes, overtime, absence and starters
7–10 days before payday	Review locums vs employees and pension changes
5–7 days before payday	Run draft payroll
3–5 days before payday	Practice manager / partner review
1–2 days before payday	Approve payroll and payments
Payday	Finalise payroll and submit FPS
After payroll	Post payroll journal and reconcile liabilities
By applicable payment deadline	Pay PAYE/NIC and pension contributions

This is far more reliable than waiting until the evening before payday.

What Happens if a GP Practice Submits Payroll Late?

Late or incorrect payroll reporting can create:

• HMRC queries
• penalties
• incorrect employee tax records
• payroll corrections
• inaccurate accounts

The problem becomes particularly difficult when payroll errors also affect NHS pension figures.

A good GP practice payroll process therefore needs both:

payroll accuracy

and

deadline control.

Locum GPs: PAYE or Self-Employed?

This is one of the most searched questions around GP payroll.

The correct answer is:

A GP locum is not automatically self-employed simply because they are called a locum.

Employment status depends on the actual engagement.

HMRC considers factors including the working arrangements, financial risk and whether the individual operates as a business in their own right. A worker can even be employed in one engagement and self-employed in another.

GP Locum Payroll Decision Table

Situation	Potential payroll treatment
GP is clearly employed under an employment contract	PAYE
Freelance GP operating independently under genuine self-employment	Usually outside payroll
Locum supplied by agency	Usually agency handles worker payroll, subject to arrangement
GP works regularly under employee-like conditions	Status should be reviewed
Locum supplies services through company/intermediary	Additional off-payroll/status analysis may be needed

The key principle is not:

“Locum = self-employed.”

It is:

“Determine employment status from the actual arrangement.”

What Records Should a Practice Keep for Locums?

For a self-employed locum, useful records may include:

• invoice
• dates worked
• sessions
• agreed rate
• payment date
• contract / engagement terms
• pensionable income information where relevant
• Locum Form A information where applicable

Keeping clear records helps separate locum costs from salaried GP payroll.

GP Locum NHS Pension Forms A and B

Eligible freelance GP locums can use Form A and Form B to pension qualifying NHS locum income.

NHSBSA currently provides specific 2026/27 Forms A and B. (NHSBSA)

The key rule is extremely important:

eligible forms must be submitted within 10 weeks of the work being completed.

NHSBSA states that pension cannot be paid on work performed more than ten weeks earlier simply because the fee was paid later. (NHSBSA)

We will cover that topic much more deeply in the dedicated Locum GP Pension article later in this cluster.

Salaried GP vs Freelance Locum: Payroll and Pension Comparison

Issue	Salaried GP	Freelance GP locum
PAYE	Normally yes	Normally no if genuinely self-employed
Employee NIC	Payroll deduction	Not ordinary employee NIC through practice payroll
Employer NIC	Practice liability	Generally not ordinary payroll NIC if genuine self-employment
NHS pension	Usually processed through relevant employer/practice arrangements	Form A/B route if eligible
Pension reconciliation	Type 2	Locum Forms A/B
Employment rights	Employee rights apply	Depends on status
Practice payroll report	Included	Normally separate supplier/locum cost
Invoice	Usually no	Typically yes

This table is especially useful for practice managers because it prevents locum invoices and employee wages being mixed inside payroll.

NHS Pension Contributions for Salaried GPs in 2026/27

NHS Pension Scheme contribution tiers changed from 1 April 2026.

Current member contribution tiers are:

Annual pensionable pay	Member contribution rate
Up to £13,259	5.2%
£13,260–£28,854	6.5%
£28,855–£35,155	8.3%
£35,156–£52,778	9.8%
£52,779–£67,668	10.7%
£67,669+	12.5%

NHSBSA confirms these ranges apply from 1 April 2026. (NHSBSA)

For most salaried GPs earning within the national salaried GP range, this means the highest 12.5% member contribution tier is likely to be relevant, although the correct assessment depends on actual annual pensionable pay and scheme rules.

What Does the Practice Pay Towards the NHS Pension?

The underlying NHS Pension Scheme employer contribution rate is 23.7%, with an additional administration levy.

However, the transitional funding arrangement continues in 2026/27.

NHSBSA states employers should continue applying a rate of 14.38% through payroll, while central funding covers the remaining 9.4 percentage points.

NHS Pension Employer Cost Summary

Component	2026/27
Underlying employer contribution	23.7%
Administration levy	0.08%
Amount employers currently pay/submit under transition	14.38%
Centrally funded balance	9.4 percentage points

This is an area where generic payroll processing can easily become confusing.

For specialist support, see Kudos Accounting’s NHS Pension Accountants.

Salaried GP Payroll: What Counts as Pensionable Pay?

NHSBSA states that pensionable earnings generally include salary, wages and fees relevant to scheme membership.

Certain payments can be excluded, including some bonuses, expense reimbursements and overtime above full-time equivalent hours.

That means:

gross payroll pay

and

NHS pensionable pay

are not automatically identical.

Your payroll system needs to distinguish these correctly.

PAYE Pay vs Pensionable Pay

Payment	PAYE payroll?	NHS pensionable?
Basic salaried GP salary	Yes	Generally yes
Normal contractual fees	Depends on employment	May be pensionable
Expense reimbursement	May be payroll-reported depending on treatment	Generally not pensionable
Certain bonuses	Payroll treatment may apply	Can be non-pensionable
Overtime above full-time equivalent hours	Payroll pay	NHSBSA says excluded from pensionable pay
Employee pension deduction	Deducted through payroll	Yes, as scheme contribution

The exact treatment depends on the payment and employment arrangement.

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What Is a Type 2 Pension Form for a Salaried GP?

A salaried or assistant GP generally needs to complete an annual Type 2 Self Assessment of Tiered Contributions.

PCSE states the purpose is to ensure NHS pension contributions have been correctly paid and allocated.

Type 2 can need to include:

• salaried GP income
• solo work
• locum work where the GP also has Type 2 work
• multiple salaried GP roles

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Who Needs a Type 2? Quick Table

GP situation	Type 2 required?
Salaried GP in one practice	Yes
Salaried GP at multiple practices	Yes
Salaried GP + locum income	Yes
Salaried GP + solo work	Yes
Solo GP work only	Yes
Solo + locum	Yes
Freelance locum work only	Generally Form A/B rather than Type 2

PCSE confirms salaried GPs must include relevant locum and solo income on the Type 2 where applicable.

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Why Payroll and the GP’s Type 2 Must Agree

The Type 2 process can identify differences between:

• what the practice deducted through payroll
• what PCSE records show
• what the GP should ultimately have contributed

PCSE specifically explains that where a Type 2 identifies an overpayment or underpayment relating to a salaried role, the practice may need to refund or collect the difference through payroll. (Primary Care Support England)

This is an important reason to retain accurate historical payroll reports.

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Example: Salaried GP With Additional Locum Work

Consider Dr A.

They receive:

Income source	Annual amount
Salaried GP employment	£90,000
Freelance locum work	£15,000
Total professional income in example	£105,000

The £90,000 salary runs through practice PAYE.

Eligible NHS pension contributions relating to the salaried role are handled through payroll/practice pension arrangements.

If Dr A also completes eligible freelance GP locum work, that locum work may involve Forms A and B.

Because Dr A has a salaried GP role, the locum income also becomes relevant when completing the Type 2 reconciliation.

This illustrates why the payroll team, accountant and GP pension records need to connect.

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NHS Pension Contributions Must Be Paid on Time

NHSBSA states NHS employers have a statutory duty to ensure scheme contributions reach the NHS Pension Scheme by the 19th of the month following the month in which earnings were paid. (NHSBSA)

This deadline is separate from the normal internal payroll deadline.

A strong GP payroll calendar therefore needs to manage both:

HMRC payroll obligations

and

NHS pension contribution obligations.

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GP Practice Payroll Deadline Table

Obligation	Typical deadline / timing
Final payroll calculation	Before payday
FPS	On or before payday
Employee payment	Contractual payday
PAYE/NIC electronic payment	Normally by 22nd of following tax month
NHS pension contributions	Normally must reach scheme by 19th of following month
P60	After tax year-end by statutory deadline
Locum Forms A/B	Within 10 weeks of relevant locum work
Type 2	Annual pension reconciliation process

Having these deadlines in one payroll calendar reduces the risk of treating HMRC and NHS pension administration as unrelated processes.

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What About Practice Nurses and Other Employees?

GP practice payroll is broader than GP pay.

Typical employees can include:

• nurses
• healthcare assistants
• receptionists
• administrators
• practice managers
• pharmacists
• paramedics
• care coordinators
• social prescribing roles

Depending on employment arrangements and pension eligibility, these employees may have different pension treatment from salaried GPs.

That is why the payroll system should record employee categories clearly rather than applying one generic pension configuration to everybody.

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Statutory Pay Rates Relevant to GP Practices in 2026/27

Healthcare workforces frequently involve maternity, paternity, sickness and other statutory absence.

Statutory payment	2026/27 rate
Statutory Sick Pay	£123.25/week or 80% of AWE if lower
SMP – first 6 weeks	90% of average weekly earnings
SMP – remaining eligible weeks	£194.32 or 90% of AWE if lower
Statutory Paternity Pay	£194.32 or 90% of AWE if lower
Statutory Adoption Pay after initial period	£194.32 or 90% of AWE if lower
Shared Parental Pay	£194.32 or 90% of AWE if lower
Neonatal Care Pay	£194.32 or 90% of AWE if lower

HMRC publishes these rates for 2026/27. (GOV.UK)

Payroll providers need to update software and processes when rates change.

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2026/27 GP Contract Changes and Payroll Planning

The 2026/27 GP contract includes £485 million of additional investment, bringing the estimated total contract value to £13.863 billion.

It also introduced new practice-level GP reimbursement arrangements and expanded GP reimbursement within ARRS. (NHS England)

For practices, that means payroll data becomes increasingly important for:

• salary-cost evidence
• employer NIC
• pension on-costs
• additional sessions
• PCN claims
• workforce planning

Payroll should therefore be capable of explaining which cost belongs to which funding source.

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ARRS GP Reimbursement in 2026/27

For PCNs, NHS England increased the salary element of the maximum ARRS reimbursement for GPs to:

ARRS GP reimbursement salary element	Maximum 2026/27
England	£118,759
London	£120,921

These represent the top of the salaried GP pay range, before applicable on-cost treatment under the scheme. (NHS England)

This is another reason PCNs and federations need payroll data tagged correctly by role and funding stream.

Larger organisations can use Kudos Accounting’s bookkeeping and payroll for GP federations and large GP partnerships where payroll needs to integrate with site and PCN-level reporting.

Practice-Level vs PCN Payroll Reporting

Practice level	PCN / federation level
Salaried GP payroll	ARRS-funded GP payroll
Practice nurses	PCN clinical roles
Receptionists	Central PCN staff
Practice manager	Federation management
Local overtime	Cross-site workforce allocations
Individual PAYE scheme	Multiple PAYE schemes may exist
Practice management accounts	Consolidated reporting required

As general practice organisations grow, payroll reporting needs to grow with them.

What Should GP Practice Payroll Reports Show?

At minimum, management should be able to identify:

• gross salary cost
• employer NIC
• employer pension cost
• employee pension deductions
• overtime/additional sessions
• statutory payments
• net payroll
• HMRC liability
• pension liability

A larger practice may also want:

• payroll by role
• payroll by site
• payroll by funding stream
• PCN-funded staff costs
• salaried GP cost per session
• temporary locum expenditure

GP Practice Payroll Cost Dashboard

KPI	Why it matters
Payroll as % of practice income	Tracks workforce-cost pressure
Salaried GP cost per session	Helps workforce planning
Locum cost per session	Useful for employed vs locum comparison
Employer NIC	Material on-cost
NHS pension employer cost	Needed for true GP employment cost
Agency cost	Indicates temporary staffing dependence
Overtime / additional-session cost	Shows capacity pressure
Reimbursed workforce cost	Helps reconcile funding
Unreimbursed workforce cost	Shows true practice exposure

A payroll system that only produces payslips leaves much of this value unused.

Payroll Should Reconcile With GP Practice Accounts

Payroll journals should feed into bookkeeping every month.

The accounting system may need entries for:

• gross wages
• employer NIC
• employer pension contributions
• PAYE creditor
• pension creditor
• net wages
• other deductions

Recording only the net amount leaving the bank materially understates staffing costs.

Example Monthly Payroll Reconciliation

Suppose a simplified payroll produces:

Payroll item	Amount
Gross employee pay	£70,000
Employer NIC	£8,000
Employer pension	£7,000
Total employment expense	£85,000
Employee PAYE/NIC/pension deductions	£25,000
Net wages paid	£45,000

If the bookkeeper records only the £45,000 bank payment, the accounts miss much of the real employment cost and liabilities.

That can seriously distort management accounts.

Common GP Payroll Errors

Payroll error	Why it matters
Treating every locum as self-employed	Employment-status risk
Putting self-employed locum invoices into wages	Distorts payroll cost
Incorrect NHS pension tier	Creates contribution errors
Pensionable pay differs incorrectly from payroll records	Type 2 reconciliation issues
Missing additional GP sessions	Employee underpayment
Filing FPS after payday	RTI compliance issue
Not updating salary after contract change	Wrong PAYE and pension
Ignoring PCN funding allocation	Poor management reporting
Net-pay-only bookkeeping	Understates employment costs
Failing to reconcile Type 2 differences	Pension records remain wrong
Missing Locum Form A/B deadline	Pensionable locum work may be lost
One employee controls whole payroll	Continuity risk

These are exactly the kinds of problems that make specialist healthcare payroll valuable.

Should a GP Practice Use Payroll Software or Outsource?

Both approaches can work.

In-house payroll may suit a practice where:

• workforce is stable
• payroll is relatively straightforward
• experienced payroll staff exist
• NHS pension knowledge exists internally
• proper holiday/sickness cover exists

Outsourcing becomes more attractive where:

• payroll depends on one practice manager
• locums and salaried GPs are frequently confused
• pension corrections are common
• Type 2 differences regularly emerge
• several sites or practices are involved
• PCN workforce reporting is required
• payroll takes too much management time

For outsourced support, see Kudos Accounting’s Payroll for Healthcare.

GP Practice Payroll: In-House vs Outsourced

Question	In-house	Outsourced specialist
PAYE calculations	Internal	Provider
FPS	Internal	Provider under agreed scope
NHS pension processing	Requires internal knowledge	Specialist support possible
Salaried GP changes	Internal	Employer provides changes
Locum classification	Practice must assess	Accountant/provider can support
Type 2 reconciliation support	Internal/accountant	Can be coordinated
Backup cover	Must be maintained internally	Provider team offers resilience
Site reporting	Depends on systems	Can be designed into service
Payroll journals	Internal	Can integrate with bookkeeping
Cost	Staff + software + training	Service fee

The cheapest option is not necessarily the best one.

The correct measure is total administrative cost + compliance risk + reporting value.

Questions to Ask Before Choosing a GP Payroll Provider

Use this table as a buyer checklist.

Buyer question	Why ask it?
Do you already run payroll for GP practices?	General payroll experience is not enough
Do you understand NHS pensionable pay?	Essential for salaried GPs
Can you support Type 2 reconciliation issues?	Prevents pension/payroll disconnect
Do you understand locum Forms A/B?	Useful for practices using freelance GPs
Can you process statutory payments?	Needed for real-world workforce changes
Can payroll split costs by site?	Important for groups
Can you separate PCN-funded staff?	Supports reimbursement reporting
Do you provide payroll journals?	Needed for accounts
Who handles payroll queries?	Communication matters
Can you migrate mid-year?	Important if changing provider
How are payroll changes approved?	Protects internal control
What happens when payroll needs correction?	Understand provider response

This type of question is much more useful than simply asking:

“How much do you charge per employee?”

How GP Payroll Connects to Management Accounts

Payroll data becomes more valuable when combined with practice financial reporting.

A GP partnership may want to compare:

practice income

against:

salaried GP cost

nurse payroll

administrative payroll

locum cost

PCN-funded roles

This can reveal whether workforce cost is growing faster than income.

It can also help partners model hiring decisions.

For large GP organisations, Kudos Accounting’s GP federation bookkeeping and payroll service combines payroll with NHS income, bookkeeping and management reporting.

Worked Decision Example: Salaried GP or Regular Locum?

Consider two simplified options.

Option A: Salaried GP

Practice pays:

• salary
• employer NIC
• employer pension contribution
• contractual employment costs

But receives a more predictable workforce resource.

Option B: Freelance locum

Practice pays:

• agreed session rate

There may be fewer ordinary employment on-costs if the engagement is genuinely self-employed.

However, session rates can be higher and availability less predictable.

Comparison framework

Factor	Salaried GP	Freelance locum
Predictability	Higher	Can vary
Employment rights	Yes	Depends on status
Employer NIC	Yes	Usually not if genuine self-employment
Employer NHS pension contribution	Applicable where scheme member	Practice contribution via locum pension process where eligible
Session cost	Often lower direct rate	Can be higher
Flexibility	Lower	Higher
Continuity	Stronger	Variable
Recruitment commitment	Higher	Lower
Reimbursement schemes	May qualify	Different rules

The decision should not be made from payroll cost alone.

Clinical continuity and workforce strategy matter too.

Can a GP Practice Put a Regular Locum on Payroll?

Yes, if the engagement is genuinely an employment relationship.

A practice should not keep someone outside payroll simply because they have historically been called a locum.

Likewise, an independent freelance GP should not automatically become an employee merely because they work repeatedly for the practice.

Employment status needs to reflect the actual arrangement.

Does a Salaried GP Need a Type 2 Form?

Generally yes.

PCSE states that salaried and assistant GPs need to complete the Type 2 Self Assessment of Tiered Contributions for each pension year.

Where the GP also has relevant locum or solo income, those roles can need to be included in the Type 2 reconciliation.

Does a Locum GP Have to Complete Type 2?

A GP who performs locum work only generally uses the Locum Forms A/B process rather than Type 2.

If the GP is also salaried or carries out other qualifying Type 2 work, the locum income may also need to be reflected in the annual Type 2 reconciliation.

What Is the GP Locum 10-Week Rule?

NHSBSA states eligible GP locum pension forms must be submitted within 10 weeks of the work being completed.

Work older than ten weeks cannot normally be pensioned through the locum process merely because payment was received later.

How Much Does a Practice Pay Into a Salaried GP’s NHS Pension?

The underlying NHS Pension Scheme employer contribution rate is 23.7%, plus an administration levy.

For 2026/27 the transitional arrangement continues, with employers instructed to continue paying 14.38%, while central funding covers the remaining 9.4 percentage points.

What Is the 2026/27 Salaried GP Pay Range?

The recommended salaried GP pay range in England for 2026/27 is £78,699 to £118,759.

The actual amount an individual GP receives depends on their contract and circumstances.

GP Payroll Monthly Control Checklist

Before every payroll is approved, the practice should check:

Control	Question
Employees	Are all starters and leavers updated?
GP salaries	Are salary/session changes authorised?
Locums	Are invoices separated from employee payroll?
Status	Has any worker’s engagement materially changed?
Absence	Is sickness/parental leave recorded?
PAYE	Are tax codes and payroll data current?
NIC	Are employer costs calculated?
NHS pension	Are contribution rates/pensionable pay correct?
Workplace pensions	Are eligible non-GP employees assessed?
Funding	Are reimbursed roles correctly tagged?
RTI	Will FPS be filed by payday?
Accounting	Will a complete payroll journal be posted?

This is the kind of concise structured information that is also highly extractable for AI search systems.

When GP Practices Should Seek Specialist Payroll Help

A specialist review is particularly useful where:

• a practice employs several salaried GPs
• regular freelance locums are used
• NHS pension corrections keep arising
• Type 2 figures do not agree
• the practice is adding another site
• several payroll schemes exist
• ARRS or reimbursed staff need separate reporting
• the practice manager spends significant time correcting payroll
• payroll and accounts never reconcile properly

The issue is not that ordinary payroll software cannot calculate tax.

It can.

The harder part is understanding the healthcare-specific context behind the payroll entries.

How Kudos Accounting Supports GP Practice Payroll

Kudos Accounting provides specialist payroll for healthcare for GP practices and other healthcare organisations.

Support can include:

• monthly payroll processing
• PAYE and National Insurance
• RTI submissions
• salaried GP payroll
• statutory payments
• starters and leavers
• workplace pension processing
• relevant NHS pension payroll support
• payroll journals
• payroll cost reporting

For more complex pension matters, practices and doctors can use Kudos Accounting’s NHS Pension Accountants.

For large partnerships, federations and PCN-level organisations, GP Federation Bookkeeping and Payroll combines workforce payroll with bookkeeping and management accounts.

And practices requiring wider tax and financial support can use Kudos’s specialist GP accountant service.

Final Takeaway

GP practice payroll is not just a PAYE calculation.

It sits at the intersection of:

• employment status
• GP contracts
• locum arrangements
• employer National Insurance
• RTI
• NHS pensions
• Type 2 reconciliation
• practice-level GP reimbursement
• ARRS funding
• bookkeeping
• management reporting

The practice needs to know not only how much a person is paid, but why the payment is being made and which employment, pension and funding rules sit behind it.

A salaried GP should not be treated like a generic office employee.

A locum should not automatically be treated as self-employed.

NHS pensionable pay should not simply be assumed to equal every pound in gross payroll.

A PCN-funded role should not disappear into an undifferentiated wage expense.

And payroll should not finish when the employees receive their money.

The process should continue through:

RTI → HMRC liability → pension contributions → bookkeeping → management accounts → annual pension reconciliation.

Practices that build those connections have a much stronger understanding of both compliance and the real cost of their workforce.