Navigating IR35 Compliance
in Medical Recruitment
IR35: Navigating Compliance with expertise
Welcome to ID Medical, your trusted partner in navigating the complex landscape of IR35 compliance within medical recruitment.
What is IR35 Legislation?
In 2017, HMRC implemented changes to the IR35 legislation that affected the way people working for the NHS and other public bodies were taxed. This affected candidates working via PSCs/limited companies.
Roles that fall within IR35 are subject to PAYE income tax and National Insurance contributions. There are a few important things you should know about IR35 and working as a Healthcare Professional:
• The end user client will now determine whether or not a role falls within IR35
• An exemption exists for private sector employers who qualify as small companies and for these it will remain the responsibility of the contractor to determine their IR35 status
• For roles falling within IR35, it will be necessary, should workers wish to continue being paid via their limited companies, to deduct tax and NICs at source, prior to payment being made (similar to PAYE)
• Subject to individual trusts’ agreement, you will still be able to be paid via a PSC, but most of the current tax benefits will be lost
ID Medical and IR35
It is likely that, for many Healthcare Professionals, these changes will increase Income Tax and National Insurance liability.
As a result, we’re:
• Working with a number of PSC and umbrella providers to explore what terms could work best for you moving forward
• Working with our clients to minimise any impact to your pay
• Liaising with our industry lobbying group to ensure your best interests are represented to Government
• Guidance provided requires that each role should be assessed individually, and whilst end user clients should not be able to apply a blanket IR35 rule, we do expect that most roles will fall within IR35 after assessment.
Please be aware that this legislation will affect every client other than those qualifying as small companies, and every agency supplying staff to both private and public sector clients. If you have questions about your specific situation with relation to IR35, we recommend seeking the advice of an accountant with IR35 experience.
Working with Umbrella Providers
We recognise the importance of seamless payroll and tax management, especially in the context of IR35 compliance.
Our strategic partnership with reputable umbrella providers plays a pivotal role in achieving this goal.
By using our partnered umbrella providers, you can experience:
• Efficient payroll management
• Legal compliance
• Transparent deductions
Stay informed with ID Medical
In the dynamic landscape of IR35 legislation, staying informed is key to making informed decisions. At ID Medical, we understand the importance of keeping our Healthcare Professionals abreast of any changes or updates.
If you have any further questions on IR35, please don’t hesitate to reach out to our team. We’re here to provide clarity and guidance tailored to your specific circumstances.