NHSI change position on IR35 – May 2017 Update Circular
As you may be aware, from 6th April 2017, tax rules changed so the task of determining whether or not IR35 applies shifted from the worker to the NHS.
NHSI’s previous position
Before 6 April 2017, NHSI advised the NHS of the impending rule change. This was based on NHSI’s incorrect understanding that many individuals currently providing services to the NHS fall within IR35. This was not accurate and their revised position is as set out below.
Revised NHSI IR35 position – 30th May 2017
The introduction of the rules has made clear that an assessment of whether or not IR35 applies should be carried out in a fact-specific way; that is, it should be applied on a case-by case basis, rather than by a broader classification of roles. A link to HMRC’s assessment tool is provided here.
With regard to personal service companies, NHS Improvement recognises that NHS providers may contract with individuals through such entities.
For ease, a link to the NHSI revision document is provided here.