Call Freephone
0800 830 930

Private hospitals and IR35 in 2021, how will it affect doctors?

Posted on Wednesday 24 March 2021

What’s happening to the rules?
If you are a doctor working in the NHS, it is likely that you will already be aware of the IR35 tax rules. These are also known as the ‘off-payroll' rules and they have applied in the public sector since April 2017, they are now due to be introduced in the private sector.

From 06 April 2021, IR35 will extend to those working in the private sector. The new rules will apply to payments made to intermediaries such as personal service companies (PSCs).The PSC will no longer be responsible for managing IR35. Instead, the end-client must assess the IR35 status of each assignment.

The IR35 rules provide that if the PSC did not exist, but you, the contractor, looked like an employee of the client for tax purposes, then the assignment is deemed to be ‘inside IR35’. This means that your pay will be subject to PAYE tax and employees' national insurance contributions (NICs). Employers’ national insurance will also be due.

The tests for IR35 status are not changing, but the responsibilities for making the IR35 status decision and deducting tax and national insurance are changing.

IR35 in detail
  • Read our FAQs for everything you need to know about IR35.
  • HMRC have released this useful fact sheet to understand how the extension to IR35 will apply.
  • For more detail, futher information may be found on HMRC’s website.

« Back to Blog

Please complete the form to download this document:
Name* :
Phone* :
Email* :
We use cookies to provide you with the best possible browsing experience on our website. You can find out more below.
Cookies are small text files that can be used by websites to make a user's experience more efficient. The law states that we can store cookies on your device if they are strictly necessary for the operation of this site. For all other types of cookies we need your permission. This site uses different types of cookies. Some cookies are placed by third party services that appear on our pages.
Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
ResolutionUsed to ensure the correct version of the site is displayed to your device.
SessionUsed to track your user session on our website.
Statistic cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously.
Google Analytics 4Google Analytics is an analytics tool to measure website, app, digital and offline data to gain user insights.
GA Old

More Details