Locums and Off Payroll Working (IR35)

Things changed in 2017

The ‘off payroll’ working rules were introduced to the NHS from 6th April 2017.

NHS authorities must now consider whether these rules apply to anyone working for them through a limited company, an umbrella company, or an agency.

The practical outcome of these new rules means that it is now far less tax efficient for a locum doctor to work for a hospital, CCG or an NHS Trust through a limited company or an umbrella company.

We now generally recommend that a locum doctor working for one of these organisations opts to be paid through the organisation’s payroll. Utilising a limited company or umbrella company will result in a minimal or no saving.

Many GP practices have interpreted these rules differently. Many GP practices do not believe that their locums are affected.

Practically this means that locums working for GPs can still take advantage of limited companies to reduce their tax bills.

How we can help

We will discuss your circumstances before you accept locum work and let you know if the ‘off payroll’ working rules will apply to you.

We will help you decide if there is any alternative to being paid in this manner.

If you do work through a limited company and are paid under the IR 35 (‘off payroll’ working rules) we will help you unravel your corporation tax and income tax returns and advise on any tax bills.