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Revised NHSI Guidance on IR35

NHS Improvement has revised its guidance to NHS providers on whether or not workers providing services via intermediaries fall within IR35:

NHSI had previously advised NHS providers “to ensure that all locum, agency and bank staff were subject to PAYE and on payroll for the new financial year.”

However it has now confirmed that this blanket approach was too simplistic, and that an assessment of whether or not IR35 applies should be carried out on a case-by-case basis, rather than by a broader classification of roles.

It requires this assessment to be “conducted fairly, accurately and take into account all relevant factors, including representations which may be provided by the individual”, and suggest that the HMRC online tool is used (, but warns that this “does not negate the necessity for careful case-by-case scrutiny.”

Whilst NHSI suggests that this rule change has “substantial administrative implications for providers”, in practice, most NHS bodies will already be complying with these requirements if they:

How Capsticks can help

As part of our package of IR35 support for public sector employers we can help NHS Trusts and Foundations Trusts by:

If you’d like to discuss the support that would be most suitable for your Trust please contact Peter Edwards, Jacqui Atkinson, Laura Horovitz or Andrew Uttley

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