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eek
2nd March 2017, 09:46
From a very recent letter to all NHS Trusts regarding Locum and Agency spending


Personal Service Companies

There is still far too much use of Personal Service Companies (PSCs) to avoid tax. New HMRC rules coming into effect in April will have a material impact on this. HMRC will treat all public sector ‘self-employed’ contractors using a PSC as falling under IR35 and therefore treated for tax purposes as an employee. As a result of these new rules, we anticipate that providers will need to ensure all locum, agency and bank staff are subject to PAYE and on payroll from 1 April 2017. We realise that this will have substantial administrative implications for providers, and more guidance on this will follow soon.

Given who this letter came from the above can probably be taken as gospel for the foreseeable future....

RonBW
2nd March 2017, 10:04
"HMRC will treat all public sector ‘self-employed’ contractors using a PSC as falling under IR35 and therefore treated for tax purposes as an employee." - in their wettest dreams they would.

I presume they mean "NHS will treat all ‘self-employed’ contractors using a PSC as falling under IR35 and therefore treated for tax purposes as an employee." because the way they have written it is not correct.

eek
2nd March 2017, 10:08
"HMRC will treat all public sector ‘self-employed’ contractors using a PSC as falling under IR35 and therefore treated for tax purposes as an employee." - in their wettest dreams they would.

I presume they mean "NHS will treat all ‘self-employed’ contractors using a PSC as falling under IR35 and therefore treated for tax purposes as an employee." because the way they have written it is not correct.

That is a direct quote from a letter sent to NHS Trust CEO's from someone with the right to say this trust is failing - we'll sack the top levels of management and/ or just close the trust down and move the hospitals elsewhere.

Sadly this is not someone's wet dream - it is an instruction that NHS trusts will follow to the letter...

Support Monkey
2nd March 2017, 10:10
So much for using the tool and individual assessments!!!

Its either employment or your outta there, it's way easier for them to just have a blanket policy of inside than spend hours going through individual agreements.

The assessment tool isn't worth a t*ss

Andy Hallett
2nd March 2017, 10:14
This must be the Jim Mackey from NHSI email I have been hearing about?

eek
2nd March 2017, 10:21
This must be the Jim Mackey from NHSI email I have been hearing about?

A link to the entire letter http://jmp.sh/v/Et8z2DADOzCYGTJDFmHo

To be honest there are bits in it that are more interesting than the IR35 side of things...

WordIsBond
2nd March 2017, 10:30
So much for using the tool and individual assessments!!!

That's why it doesn't matter if the tool is late or doesn't work, I guess.

jamesbrown
2nd March 2017, 10:38
A link to the entire letter https://filetea.me/n3wmqkUjudXSFORWWFmIqx55Q

To be honest there are bits in it that are more interesting than the IR35 side of things...

Could you double-check your linky? Could just be an issue w/ a browser plugin on my end...

LondonManc
2nd March 2017, 10:39
That's why it doesn't matter if the tool is late or doesn't work, I guess.

Correct. You'll be deemed outside where absolutely essential.

RonBW
2nd March 2017, 10:45
That is a direct quote from a letter sent to NHS Trust CEO's from someone with the right to say this trust is failing - we'll sack the top levels of management and/ or just close the trust down and move the hospitals elsewhere.

Sadly this is not someone's wet dream - it is an instruction that NHS trusts will follow to the letter...

I'm not suggesting that it isn't a direct quote, nor that it is from someone senior.

I was merely highlighting that the idea that "HMRC will treat all public sector ‘self-employed’ contractors using a PSC as falling under IR35 and therefore treated for tax purposes as an employee." is what HMRC would love in their wettest, wildest dreams.

It is also incorrect - HMRC will NOT treat all public sector ‘self-employed’ contractors using a PSC as falling under IR35, no matter how much they would like to.

SueEllen
2nd March 2017, 10:46
Junior grades are under D&C so should fall under IR35 anyway.

Senior grades are managing staff so should fall under 1R35.

The only exceptions are non-clinical staff.

And the link doesn't work.

eek
2nd March 2017, 10:51
Junior grades are under D&C so should fall under IR35 anyway.

Senior grades are managing staff so should fall under 1R35.

The only exceptions are non-clinical staff.

And the link doesn't work.

try http://jmp.sh/v/Et8z2DADOzCYGTJDFmHo

jamesbrown
2nd March 2017, 10:53
try http://jmp.sh/v/Et8z2DADOzCYGTJDFmHo

That works - thanks.