NHS takes a U-turn, IR35 review in order

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Posted ByAdmin

We are sure you must have received an update from NHS, “Working through intermediaries: IR35 update”, stating that their “blanket IR35 determinations” were not accurate as announced earlier and that not everyone in the locum staff will be declared inside IR35 without a proper review.

On 31 May, a couple of leading newspapers in the country reported that NHS has rolled back this decision after it was challenged after several members of the locum staff. Given how dynamic the IR35 issue is, this U-turn decision isn’t surprisingly at all.

The truth is although it has got everyone jumping on their seats, and the phones haven’t stopped ringing across recruitment agencies and service providers like us ever since, the situation has gotten even worse. Now the NHS plans to carry out their IR35 decisions in a fact-specific way on a case-by-case basis, and this has made the whole process all the more cumbersome.

The NHS will now have to determine whether IR35 applies to a specific worker. The fact is in most cases it will apply and so the public body will have to use HMRC’s ESS tool to determine the IR35 status.

We request you to be patient in this utterly chaotic time. Don’t panic about your IR35 status. If you are already inside IR35, nothing changes for you and your invoices will be cleared in the form of deemed direct payments or you have probably chosen to get paid through an umbrella company.

To identify your IR35 status based on your current working practices, please take the test on the HMRC employment status tool. Please feel free to get back to us with your results, and we will guide you from there.