FCSA Associate Member

IR35 Compliant Locum Solutions

As you may already be aware, HMRC are widening the scope of the current IR35 legislation as of April 2017 and all locums engaging with the NHS (or any Public/Government Body) are expected to be affected. If you choose to work through an Umbrella Company, you become an employee of that company. The Umbrella Company then contracts out your services to the client or agency. The Umbrella Company pays you directly after making the necessary deductions for tax and National Insurance contributions on a Pay As You Earn (PAYE) basis.

CHANGES TO THE CURRENT SYSTEM:

  • The Trust is to decide whether a position falls under IR35.
  • Any locum position falling under IR35 as of 6th April 2017 will have all National Insurance (NI) and PAYE deducted at source.
  • All payments made after 5th April 2017 will have the necessary NI & PAYE deducted at source. Please note that this will also apply to payments made post 5th April 2017 even if work was completed and invoiced pre 5th April 2017.

You will remain an employee of the umbrella company regardless of whether you move to a new assignment, start a project with a new end client or agency or are temporarily between assignments.

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