What is IR35?
IR35 legislation is a set of guidelines that determine the levels of the tax and National Insurance a candidate working through an intermediary should pay, based on what their working arrangement is.
When do the IR35 changes come into effect?
The changes that HMRC are proposing with regards to IR35 will take effect from 6 April 2017. The legislation is still in draft format, which means there may still be some further changes to this. This means that from the 6th April 2017 if a role is deemed to fall within IR35 and the rules apply, then the relevant tax and National Insurance will be taken from payment to the intermediary and paid over to HMRC on their behalf (Please note, that this is not the same as Pay As You Earn).
Do I fall within the guidelines?
These changes will impact any NHS agency workers who are not currently being paid via PAYE. So If you receive a payslip each week that evidently shows that tax and National Insurance have been deducted from your salary then you are a PAYE worker and IR35 does not apply to you.
However, if you are being paid by an agency or through the NHS Direct Engagement arrangement you will most likely be effected by IR35.
Never the less as every person’s situation is different we would strongly recommend you speak to one of our IR35 experts on 020 8969 9915 before making any decision as they will discuss your options in detail and take the necessary steps you need to make sure you fall within the IR35 guidelines.