Trying to grasp the requirements surrounding IR35 can be difficult for agency nurses and locum doctors. Many healthcare professionals look for IR35 advice and information. And when your main concerns are looking for those in your care, the last thing you need to be concerned about is your IR35 status. There are also changes to the IR35 rules that run from April 2021 which might still be unclear to some of you. We have summarised the information around IR35 for the healthcare sector in this article to ease your work.
What is IR35?
The government’s tax legislation known as IR35 focuses on finding ‘disguised employees,’ or those who provide services to a customer through an intermediate firm, such as personal service companies (PSC), and whose connection with the client would be one of employment if the intermediary were not there. (GOV.UK, 2021)
Operating inside the IR35 rules
Being deemed ‘inside IR35′ for tax purposes implies you are treated as if you were a permanent employee by your end client and are consequently subject to PAYE. When you work in IR35, your employer (which may be an umbrella company or a recruiting agency) deducts the relevant taxes and NI contributions from your pay ‘at source,’ meaning before it hits your bank account.
New IR35 Rules since April 2021
The new rules have been introduced to the IR35 private sector on the 6th April 2021. HMRC has long been concerned about the use of Personal Service Company (PSC) intermediaries, believing that there is a considerable ‘tax gap’ as a result of these arrangements. Payments made to middlemen, such as PSCs, have been subjected to the new restrictions. PSC has no longer been in charge of IR35 since April of this year. Instead, each assignment’s IR35 status must be determined by the end-client.
What are the Engagement Options with Mylocum?
If your assignment falls inside IR35, Mylocum can provide you with the following engagement choices, where taxes and NI is deducted:
~ Umbrella model
If you need any further information about the Private sector off-payroll working for intermediaries and contractors check the official government guidance . You can as well understand more about the April 2021 changes to the off-payroll working rules (IR35) related to the healthcare industry here.
Are you looking for nursing agencies near your location? Mylocum and CarePro are based in London but we provide vacancies all around the UK.
You can check the available opportunities on our website or you can directly contact a member of our compliance team. Find Mylocum on CV-Library.