In this week's autumn statement, chancellor Phil Hammond confirmed his public sector off-payroll plans that, from April 2017, where locum GPs are engaged through their own limited company to work for a GP practice, responsibility to apply the IR35 rules (also called the 'intermediaries' rules) will fall to the practice paying the locum through his or her company. The practice will be liable to pay any associated income tax and National Insurance. Yikes.
HMRC will be providing a new interactive online tool (hopefully soon) to help practices and other public sector bodies, agencies or other third parties to determine whether the intermediaries rules apply to them or not.
Update 6th March 2017
- HMRC tool is now live.
- We're seeking clarification on what GP locums should be doing in terms of ensuring their T&Cs help protect them and the practice. Your substitution clause(see NASGP's model T&Cs) is likely in reality to have the right to send someone else to do your session, and for that to actually happen without the practice agreeing the replacement in advance. The second area is when you can decide when you do the work. Both are potentially tricky, and could have implications on paying pension too.
- You may need to be more overt how you identify yourself to others ao that they know you are in business on your own account.
- The old rules about being an extra pair of hands rather than standing in for another GP are not so relevant any more.