What does IR35 mean for nurses?
At WR Health, many of our nurses have been in touch with us to ask about the upcoming changes to the IR35 legislation and how they will affect the way they work. Here’s what you need to know...
IR35: What is it?
IR35 legislation, is a set of rules that help determine the tax and National Insurance a nurse should pay based on the nature of their working arrangement.
Your tax status
To figure out whether you fall inside IR35, you have to be categorised by HMRC as ‘employed’ or ‘self-employed’. This is determined by various factors such as your responsibilities, or the degree of control you have over what work you do and how you do it.
This means that nurses may not always be seen as ‘self-employed’ if they work through a PSC. However, if you are not deemed to work ‘within IR35’, no additional taxes should be deducted. We recommend that all nurses read government
guidelines and seek advice to correctly determine your own employment status.
What is changing?
So, from April 2020, IR35 will be rolled out to the entire private sector - but only for companies that are large or medium sized; these are companies – meaning most care homes and private hospitals which are part of a larger organisations will fall into this category. Here are some of the various scenarios nurses face and the IR35 implications that will go with them:
Working in a large or medium sized company
From April 2020, it will be the responsibility of the ‘end user’ (e.g. the care home) to determine your employment tax status if they are part of a large or medium sized company.
Working as a PSC
If you are working through a PSC but the care home determines that you are employed by them, you will need to pay your own tax and National Insurance out of
your received pay as if you are a PAYE worker.
If you are working through a PSC and the care home determines you are self-employed, you will be paid as normal, but the company will need to report any payments to HMRC.
Working as a PAYE employee
If you are working as a PAYE worker, you will continue to be paid as normal.
Working in a small home
After the April 2020 rollout, the responsibility for determining the tax status will still remain with the individual workers.
Seek the right partner
I know, boring stuff right? All of this new legislation can be a real headache.
We know that working agency via your own company can have its benefits and although it might not affect you personally – this is a great opportunity to ask yourself “is agency still working for me?”
As a recruitment company that solely works on permanent vacancies, we’ve seen the private sector take note of who their work force are and what they need in a career.
Flexibility, good salaries and work life balance (it doesn’t have to be a myth!).
WR Health have over 10 years’ experience in recruiting nurses for the private sector and over that time we have created an incredible client base of employers that are looking to provide jobs that suit their staff – not just their pocket!
Our consultants know these companies back to front and are more than happy to share any knowledge they have about the healthcare sector with you.
If you’re a nurse looking for a company that can offer you permanent hours, holiday pay, company pensions and their own added benefits, get in touch with us, we’re here to listen and find you something that suits you.