If you continue without changing your settings, we’ll assume you’re happy to receive all cookies from the BMA website. Find out more about cookies
When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalised web experience.
Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms.
You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
These cookies are required
These cookies allow us to know which pages are the most and least popular and see how visitors move around the site. All information we collect is anonymous unless you actively provide personal information to us.
If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
These cookies allow a website to remember choices you make (such as your user name, language or the region you're in) and tailor the website to provide enhanced features and content for you.
For example, they can be used to remember certain log-in details, changes you've made to text size, font and other parts of pages that you can customise. They may also be used to provide services you've asked for such as watching a video or commenting on a blog. These cookies may be used to ensure that all our services and communications are relevant to you. The information these cookies collect cannot track your browsing activity on other websites.
Without these cookies, a website cannot remember choices you've previously made or personalise your browsing experience meaning you would have to reset these for every visit. In addition, some functionality may not be available if this category is switched off.
Our websites sometimes integrate with other companies’ sites. For example, we integrate with social networking sites such as Twitter and Facebook, to make it easier for you to share what you have read. These sites place their own cookies on your browser as a result of us including their icons and ‘like’ or ‘share’ buttons on our sites.
If you are self-employed and work through your own Ltd company, this will affect you. If you're a sole trader, it shouldn't, but you should be aware in case your employer tries to make blanket changes. This already applies to practices but it will soon apply to all settings and people working OOH should especially take note.
It’s been over two years since I last wrote about IR35 and its impact on locums, but changes to the regulations are once again planned, and this is the first of a series of blogs to guide you on what it means for you.
As a recap, IR35 or “intermediaries legislation” is a set of rules designed to prevent tax avoidance. Its purpose is to catch people who are in “disguised employment” in which a worker receives payment from a client through an intermediary, such as their own limited company, but had the company not existed then the worker would be in an employed relationship with the client, or “engager.”
Prior to April 2017 it was always the responsibility of the limited company in such situations to determine the employment status of each engagement. In April 2017 the rules were changed so that where the engager is a public sector body (eg: a GP practice or NHS Trust) it is their responsibility, and not that of the locum’s limited company to determine the status and deduct tax and NI at source if the engagement were deemed to be employed.
You can refresh your memory of the previous BMA guidance on IR35 by reading the expert guidance which can found here, and also my previous explanatory blog here.
What did this mean in 2017?
HMRC published tools to assist engagers and workers in assessing their employment status for tax purposes. Unfortunately, despite guidance that each engagement should be assessed individually with the tool on a case-by-case basis, some providers applied blanket policies declaring all locums, whether working through a limited company or as a sole trader, to be employed for tax purposes. Despite the rules not changing for sole traders – with the question for them being purely one of employment status – many providers applied such blanket policies to all “off payroll” workers.
This resulted in confusion for locums, and destabilisation of the workforce as affected locums terminated their engagements with such providers. The BMA published a statement regarding this issue which can be found here.
What is changing?
From April 2020, the rules will be changed again so that as well as public sector bodies, private sector bodies which are defined as medium or large will also be responsible for determining employment status for tax of all workers whom they engage via an intermediary. This means locums providing services to non-public sector bodies such as corporations who provide Out-of-Hours (OOH), Urgent Care, Walk-in-Centres etc. may now be affected from April 2020.
What is the BMA doing?
The BMA is keen to avoid similar confusion and instability as was the case in 2017. Therefore, we will be publishing ongoing guidance as well as meeting with key stakeholders to minimise disruption and ensure locums are fully informed as to how to determine their employment status for each engagement. Additionally, we will be publishing advice on how to ensure locums understand what statutory employment rights they may be entitled to if they are in fact found to be employed, and any steps they may be able to take in order to enjoy such rights.
What should I do in the meantime?
All locums working either directly or through a limited company should look at each engagement they undertake to determine their employment status for tax. A link to the HMRC employment status tool can be found below. You should also discuss the future changes with any client you engage so that if changes to your employment status are likely, you have adequate time to take steps to address this.
Matt Mayer is the sessional GPs committee deputy chair
A very clear summary - thank you. I just have to point out, though that saying "If you're a sole trader... you should be aware in case your employer tries to make blanket changes" doesn't really make sense... I'm a sole trader, so my employer is me! And very a reasonable employer I always find myself, I must say...
Using ‘Your Texas Benefits’ you can apply for state-funded benefits such as SNAP (formerly known as Food Stamps), TANF and Medicaid and much more.
There is a set of specific rules in the IR35 legislation that the public body applies in making this decision. ...
UPS also well known as https://upserss.club/ today doesn’t require any sort of introduction. Established in 1907, this firm is today one of the largest in terms of parcel delivery service.