Further guidance has been issued by NHS Improvement in relation to the application of the HMRC IR35 rules. The guidance makes it clear that, as per the HMRC advice, each case must be looked at on its own facts when determining, in particular, a locum, agency or bank worker's status for tax purposes. The HMRC employment check tool can be used for guidance as to whether someone should be considered an employee or not for tax purposes.
What does this mean for employers?
Employers will need to scrutinise individual circumstances rather than taking the view that all locum, agency and bank staff will simply fall into the category of an intermediary under IR35. This will mean employers will need to ensure they have correctly assessed each individual for tax purposes. If advice is needed on any particular case our tax team and employment team are happy to assist.
Click here to view the NHS Improvement's full guidance.