RE: IR35

Thorn — Mon, 09 Mar 2020 10:28:40 GMT

Hi! Locum here. I have been a limited company.

So far, I know VetsNow, IVC, CVS and Vets4Pets are ceasing to go for locums who are self-employed as sole traders or limited companies, despite the generalisation that the majority of locum nurses will not be applicable for IR35 (because most work in multiple practices and are filling a gap that could equally be filled by another locum rather than them specifically). Presumably more corporates might take a similar view. From what seems to be the case, this means that these practices (should they employ you as a locum) will want you either to sign up with them formally to be paid PAYE (so they sort tax etc) or through an umbrella company. As umbrella companies will take a cut of your wages (10% is what I have had in the past) this can be unappealing. PAYE equally will sometimes have implications that you have to work a certain number of shifts, say, for that company in order to stay on their books.

The implications for a self-employed locum are obvious in that you will be missing out on the usual tax deductions in the form of CPD, uniform, milage etc which will make locumming in a countrywide way potentially more difficult (because paying for a room to stay for practices without accommodation becomes non-viable unless you hike up prices massively etc). You can charge expenses through umbrella companies but they will take their cut of your money, which means inevitably locums will need to charge more to be taking home the same net pay.

There is also the question of tax over multiple jobs -if you are signed up to numerous companies as PAYE, I am uncertain if this means that you will be hit be second-job tax hikes.

For me, one of the appeals of locumming was freedom and choice. I had pride in running my own business, dealing with my own accounts and having autonomy over my own affairs. The new changes remove the appeal and benefits of being a locum but do not offer the benefits of being a permanent member of staff. I have already started seeking alternate employment and on discussion with other locum RVNs, many are choosing abandoning nursing altogether over the options on offer (though everyone is of course different).

It will be interesting to see what happens to staffing over the coming months if the number of available locum RVNs reduces and the prices they are forced to charge in order to live increases.

RE: IR35

Alison Clare Hickman — Tue, 25 Feb 2020 16:03:24 GMT

Hiya

It's.a.complicated area... The changes that have been made now place the burden of responsibility of whether a locum falls into or outside of IR35 on the employer of the locum. After April it will be law for entities of 50+ employees to do so but some entities are doing it anyway irrespective of size and some are doing it as an "all tarred with the same brush" policy (they should review your circumstances individually but they're not). IVC are doing the latter and therefore all locums have recently received a communication from them that states they won't hire you unless approach is through umbrella/agency etc.

There is a huge discussion about this on Vetsurgeon if you would like to hear what the vets are saying and experiencing.

I am a self employed sole trader. Not currently locuming so watching all this with intense interest. IR35 affects those in a Ltd Company status. My own personal thoughts are that I made the right choice to remain a sole trader even though over the last few years it did adversely affect who I could work for (only taking Ltd Co locums).

It seems that if you do change to work through, say an Umbrella, that the vet locums are reporting they will increase their fees to make up for the loss of earnings.

Not really a definitive answer for you but as nobody really knows what is what about IR35 it would be difficult to give one!