By Debbie Smith, CEO, Caritas
Last autumn the government confirmed its intention to push ahead with new rules surrounding the IR35 tax status for temporary workers working in the public sector.
Confusion and uncertainty seem to have surrounded the changes and many local authorities and locum social workers are still unprepared for the changes, which are nearly upon us.
The new rules come into force on 6 April and will mean that public sector clients will be responsible for determining whether a locum social worker is caught by IR35 or is genuinely self-employed.
Where a social worker is deemed to be caught by IR35, the fee payer – usually the recruitment agency – will be responsible for deducting and paying tax and NI contributions from their pay much like a standard employer.
While there are still questions left unanswered, we have put together an IR35 guide for locum social workers that answers the most frequently asked questions about what the changes could mean for them.
What should I do now?
We recommend that you clarify your IR35 status from your end client (the public sector or authority) as soon as possible so that you have time to make changes to the way you are paid, where appropriate.
This legislation takes effect in just three weeks and if IR35 applies to your assignment any payment made after Thursday 6 April will be subject to full tax and National Insurance.
If you are looking for payment comparison advice (PAYE v umbrella v PSC) or would like to discuss your circumstances, email us at IR35queries@caritas-recruitment.com – you don’t have to be a Caritas locum, we are happy to help!