Pharmacy Accountants for Owners and Locums
We keep the accounts, reconcile the NHS reimbursement, run the payroll and file the tax for community pharmacies and the pharmacists who work in them. A firm regulated by the ACCA, with a fixed fee agreed before we start.
- +An ACCA-regulated practice, fixed fees agreed first
- +The dispensing and retail VAT split handled correctly
- +Locum returns, expenses and the IR35 question dealt with
- +Buying or selling a pharmacy, and the goodwill on it
Get a Fixed-Fee Quote
Tell us your situation. We reply within one working day, with a fixed fee agreed before any work begins.
Which One Are You?
Two very different jobs sit behind the word pharmacy. Pick the one that fits and we will show you what we do for it.
Community Pharmacy Owners
A community pharmacy is a business with an unusual income: NHS reimbursement, the Drug Tariff and a retail counter, all in one set of books.
- Year-end accounts with the NHS reimbursement reconciled
- The dispensing and retail VAT split done right
- Buying or selling a pharmacy, and the goodwill on it
Locum and Employed Pharmacists
A locum is a small business of one. We handle the return, the expenses you can claim, and whether a limited company is worth it.
- Self Assessment filed, with every allowable expense claimed
- The GPhC fee, indemnity and CPD treated correctly
- Sole trader or limited company, worked on your numbers
The VAT Split Every Pharmacy Lives With
A pharmacy sells two things at once, and they are taxed differently. Get the split wrong at the till and the return is wrong every quarter.
Drugs dispensed on an NHS prescription are zero-rated for VAT.
General over-the-counter and retail sales are standard-rated.
Sources: HMRC VAT Notice 701/57 and gov.uk. Checked 28 July 2026. Nothing on this site is published without a primary source behind it.
Pharmacy is two businesses wearing one coat. The owner runs a shop whose main customer is the NHS: income arrives as reimbursement at Drug Tariff prices plus fees, the retained buying margin is surveyed and clawed back, and a retail counter sits alongside it on a different VAT footing. The locum who works behind that counter is a business of one, with a return to file, expenses to claim and a limited-company question to answer. Neither is served well by an accountant who does a bit of everything.
We do both. Pharmacy accountants exist because the reimbursement, the dispensing and retail VAT split, and the locum tax rules are specific enough that a generalist tends to miss things that add up.
What We Do for Pharmacy Owners
The bookkeeping and year-end accounts with the NHS reimbursement reconciled against what was dispensed, the VAT returns with the zero-rated dispensing and the standard-rated retail kept apart, the payroll for pharmacists and counter staff, and the corporation tax or Self Assessment return at the end of it. The point of a specialist is that the margin is visible and the reimbursement is checked, rather than taken on trust.
When you come to buy or sell, we handle the goodwill, the valuation and the capital gains, which is where the largest numbers in a pharmacy owner's life usually sit.
What We Do for Locum Pharmacists
The Self Assessment return prepared and filed, with every allowable expense claimed: the GPhC registration fee, professional indemnity, professional body membership and the travel and training that go with locum work. We work out whether you are better as a sole trader or through a limited company, and we deal with the off-payroll rules where they apply.
It is the everyday work that keeps a locum out of trouble with HMRC and out of paying more tax than the rules require.
How We Quote
A fixed fee in writing before anything starts, set by what you run and what you need rather than by an hourly clock. A single locum return is a different price from a group of pharmacies with a payroll and quarterly VAT.
If you are a locum with a straightforward set of figures, the honest answer is sometimes that you can file it yourself, and we will tell you that rather than quote for it.
What We Do Not Do
We do not sell tax-avoidance schemes. Tidy Money Ltd is regulated by the ACCA, and the job is to apply the rules correctly and claim the reliefs you are due, not to sell you a structure HMRC will later unpick.
We are also not a directory. Your enquiry does not go to a panel of firms, nobody pays us to be recommended, and there are no testimonials on this site, because we will not publish any we cannot evidence. We do not run an inbound phone room either, so you will not be cold-called.
Guides for Pharmacy Owners and Pharmacists
Plain explanations of the money side of pharmacy, from the Drug Tariff to what a locum can claim, written for people who run pharmacies rather than for other accountants.
How Community Pharmacy Funding Works
How the CPCF, the Drug Tariff and the Single Activity Fee actually pay a pharmacy.
Locum Pharmacist Tax
Self-employed, employed or limited company, and how each is taxed.
VAT for Pharmacies
Why dispensing is zero-rated, retail is 20%, and when you must register.
Buying a Pharmacy
Goodwill, financing, allowances and the tax waiting on a future sale.
Pharmacist Expenses and Allowances
The GPhC fee, indemnity, CPD and travel a locum can put against tax.
Making Tax Digital for Pharmacists
The thresholds and dates that pull locum sole traders into digital reporting.
What We Are Engaged to Do
Accountants for Locum Pharmacists
The return, the expenses and the company question, for pharmacists who locum.
Community Pharmacy Accounts
Year-end accounts with NHS reimbursement and the dispensing VAT split reconciled.
Buying or Selling a Pharmacy
Goodwill, valuation and the tax on the deal, for buyers and sellers of a pharmacy.
Pharmacy Payroll and Bookkeeping
Payroll for pharmacists and counter staff, plus books that keep the VAT split clean.
Pharmacist Tax Returns
Self Assessment for locum and employed pharmacists, ready for Making Tax Digital.
Common questions
How much does a pharmacy accountant cost?
It depends on whether you own a pharmacy or work as a locum, and what you need. We quote a fixed fee before starting rather than an hourly estimate, so you know the number before you commit. A single locum return is a different price from a group of pharmacies with a payroll, quarterly VAT and a stocktake.
Do you handle the dispensing and retail VAT split?
Yes, and it is one of the main reasons pharmacies come to us. Drugs dispensed on an NHS prescription are zero-rated, while over-the-counter and general retail sales are standard-rated at 20%, so a pharmacy is a mixed-supply business. We set the till and the bookkeeping up so the split is captured correctly and the return is right every quarter.
I am a locum pharmacist. What can I claim?
The costs that are wholly and exclusively for your work: the GPhC registration fee, professional indemnity insurance, relevant professional body membership, and travel and training. We prepare your Self Assessment return with those claimed correctly, and tell you whether working through a limited company would leave you better off.
Can community pharmacy owners join the NHS Pension Scheme?
Generally not for their pharmacy contract income. Unlike GP and dental contractors, community pharmacy contractors are not able to access the NHS Pension Scheme in respect of the pharmacy, so retirement planning is done through the business and personally instead. Some employed pharmacists, for example in NHS hospitals, can be members. We can point you to where the line falls for your situation.
I am thinking of selling my pharmacy. What tax will I pay?
On a sale you are usually looking at capital gains tax on the goodwill and other business assets, and Business Asset Disposal Relief may reduce the rate on qualifying gains up to a £1,000,000 lifetime limit. The BADR rate has been rising, so the timing of a disposal matters, and we model it on your figures before you commit to a sale.
Tell Us Whether You Own or Locum and We Will Quote
Tell us whether you own a pharmacy or work as a locum, and what you need: the accounts, the VAT, the payroll, a return, or a sale. We come back with a fixed fee for the work and the dates that apply. If you only need a return and your figures are simple, we will say so rather than quote for a full package.
Get a Quote