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Locum social workers, as well as other public sector contractors operating through their own limited company (PSC), are very likely to be affected by HMRC’s upcoming ‘Off-payroll working in the public sector; IR35 reform’.

Current proposals

The picture at the moment strongly suggests that the IR35 reform will come into force in April 2017. This will place the responsibility of IR35 determination on recruitment agencies or public sector employers. Should a recruitment agency or public sector body classify a locum’s contract as “caught” by the IR35 legislation and therefore deemed as an employee for tax purposes they will have to deduct full PAYE and National Insurance (NI) as they would for a worker.

This means all public sector workers operating through their own limited company will no longer be responsible for identifying the IR35 status of their contract.

For our locum social workers operating as such, Sanctuary Personnel will be responsible for identifying when IR35 applies, calculating tax and NI deductions and paying these to HMRC through a new portal expected to launch in beta-phase over the coming weeks.

Financial liability for any IR35 status assessed inaccurately will lie squarely with either the recruitment agency or the public sector employer. This means locums will not have to pick up any shortfall in PAYE and NI should their IR35 status be incorrect.

What happens next?

In real terms, the majority of locum social workers will already fall within IR35 and already be operating their limited companies accordingly.

Sanctuary Personnel is already in a strong position to implement the changes and is in the process of establishing a robust in-house process to make sure we comply with the impending changes.

As the largest recruiter of social workers in the UK, we will be offering as much support as possible to our candidates as news of the changes un-fold.

Join our online discussion

In addition to a series of blogs and mailers, we ran a webinar on the changes on Tuesday 29 November. You can view the replay, or download a written transcript of the discussion. Alternatively, if you have any pressing questions about the IR35 reform, fill in the form below.

Email a friend
michael williams, 18 November 2016, 03:17 PM
I am keen to see how the IR35 and new reforms might affect me.
Gemma, Sanctuary Social Care, 18 November 2016, 03:21 PM
Hi Michael, thank you for your comment. If you fill in the form on this page, we will send you information about our online discussion, where you can watch or take part. All the best, Gemma.
Elaine Stephens, 29 November 2016, 03:09 PM
What percentage of my gross salary will I receive once the changes have been implemented?

Will I be able to claim home to work mileage against income tax?
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