Firstly, we at WTT Consulting would like to record our gratitude to you for returning to the front line in the present crisis. May you all stay fit and well.
Secondly, the taxation of NHS workers has been through some changes in the past couple of years and as a result you may not be familiar with those new rules. We hope the following is of assistance.
Tax rules for NHS workers
The NHS, as a public body, is obliged to make a determination of your tax status. In theory this is based upon a myriad of features and although there is help available in the form of a tool supplied by HMRC (called CEST). In general, unless you have specialist skills and work without day to day supervision, direction and control from a manager, you will be regarded as an employee for tax purposes.
The implication of this status is that all payments to you, other than authorised expenses, should be subject to tax and NIC.
If you are on the payroll of the NHS, these deductions will happen automatically.
If you are asked to find an “umbrella company” you need to be sure that full tax and NIC deductions are being made.
Schemes to avoid
Unfortunately we – and HMRC – are seeing arrangements being suggested to returning NHS workers that are advertised as leaving you with more money than an employee might expect. Be warned that the means used to achieve this higher return inevitably mean that less tax is paid. It’s often difficult to spot this as the fees charged for such schemes are hidden, high and give the impression that tax has been paid when it fact it has not.
HMRC has historically seen these schemes as tax avoidance and investigates them.
HMRC has warned about the use of such schemes, here. https://www.gov.uk/guidance/tax-avoidance-promoters-targeting-returning-nhs-workers-spotlight-54
We specialise in assisting those who often unwittingly became involved in such schemes and have details of over 150 arrangements from the past 20 years. We would echo the HMRC warning.
If you are unsure about any of the arrangements you have been offered or have seen advertised, please call us or contact us via firstname.lastname@example.org and we will be happy to discuss your situation.
There is no charge for this service.
As all health workers know, prevention is better than cure. Here, the same rule applies. If you are in any doubt as to your situation, PLEASE CALL US FOR FREE.