Are you IR35 Ready?

If you are working through a Personal Service Company (PSC), you will almost certainly have to switch to PAYE from 6 April as new rules are being introduced which will affect your take home pay.

The IR35 legislation identifies individuals who are avoiding paying the tax that they should be. It specifically challenges those people who supply their services to clients via their own ‘Personal Service Company’ (PSC).

HMRC want to ensure greater compliance and that’s why they are changing where the responsibility for applying the IR35 rules sit.

Trusts will decide whether the person providing the services via a PSC would be treated as an employee if it was not for the presence of the PSC. Where this is the case, the Trust will be required to withhold PAYE and NIC at source regardless of the contract/assignment length. It is therefore not up to the PSC worker to provide evidence of whether IR35 applies, but rather a decision made by the Trust.

Thus, most agency workers won’t be able to work through PSCs in the NHS after this date if they are not on PAYE.

Although you can continue to operate your PSC with NHSP and any assignments within the legislation will have the withheld PAYE/NI deducted from the invoice, we don’t think this is the right option for you!

Agencies are also encouraging people to join their ‘umbrella companies’ who will deduct PAYE/NI contributions at source from the agency payroll. We think that might be a bad idea. Umbrella companies charge a fee ranging from 1-5% and are likely to deduct a whole range of other things to which you are entitled.

NHSP already offers a full payroll solution and you will not bear any employer NIC whilst enjoying a number of perks like:

• Weekly pay
• First choice of available shifts
• Flexible working hours
• Paid holiday
• Have a better work – life balance
• Stakeholder Pension Scheme available

Don’t wait around, join the bank today and you could be choosing shifts tomorrow. And we won’t charge you a penny.

If you’re a medical locum looking to join the bank click here or email

About the author

NHS Professionals administrator

NHS Professionals manages the temporary staffing needs of around 66 NHS Trusts across England. An integral part of the NHS, it aims to reduce Trusts’ spending on flexible workers without compromising quality, by providing greater transparency of demand and supplying bank staff at the best possible rate. Its bank of more than 40,000 flexible workers comprises general and specialist nurses, doctors, midwives, admin/clerical , allied health professionals, healthcare scientists, support services among other healthcare professionals.

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