Private Sector IR35 Impact on CAMHS Professionals and Healthcare Contractors
IR35 rules are changing for private sector contractors from April 2020, significantly impacting mental health professionals, CAMHS contractors, and healthcare workers operating through Personal Service Companies (PSCs). These off-payroll working rules will affect how locum mental health professionals and contract healthcare staff are taxed.
Disclaimer: We are not accountants, nor qualified to offer tax advice. The aim of this post is to signpost to some of the latest legislation that has been published about off-payroll working rules that will impact those working in the private healthcare sector.
Understanding the IR35 Changes for Healthcare Contractors
HMRC first changed the way off-payroll workers’ tax statuses are decided for those working in the public sector during April 2017. Many NHS contractors and local authority workers were deemed inside IR35, meaning many started working in the private healthcare sector to remain working through their PSCs.
Now HMRC plans to apply the same rules to the private sector, stating that just 10% of PSCs apply existing legislation correctly, with the cost of non-compliance estimated to reach £1.3bn by 2023.
Latest IR35 guidance: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/783409/Off-payroll_working_rules_from_April_2020.pdf
How CAMHS Professionals Are Preparing for IR35 Changes
We are currently working consultatively with each of our clients, reviewing healthcare contractor roles on an individual basis to determine which positions fall inside and outside IR35. This ensures private sector contractors in mental health services will be well-informed before the April 2020 deadline.
Alternative Solutions: Overseas Healthcare Opportunities
With upcoming changes to contractor tax rules, we predict many mental health nurses, psychiatrists, and psychologists may consider overseas healthcare jobs. We offer numerous international mental health roles for CAMHS contractors seeking opportunities abroad, including positions in neighbouring countries.
Many of these overseas healthcare positions are extremely well remunerated, with both permanent and long-term contract opportunities available.
Explore International Mental Health Opportunities
If you’re a healthcare contractor affected by IR35 changes and wish to explore overseas opportunities, contact us today:
Michael – 0203 150 0440 or michael@camhsprofessionals.co.uk
Discover how these regulatory changes might impact your contracting career and explore alternative pathways in the global healthcare market.
