Tax Assurance

We are required to ensure that all contractors comply with IR35 tax legislation.  If we do not ensure compliance (i.e. that the contractor is paying the right amount of tax) NHSBT is liable for fines from HMT. In order to ensure compliance NHSBT has decided that we will not contract with individuals via a personal service company without prior approval from the Director of Finance. This is because all contractors are deemed inside of IR35 and therefore arrangements need to allow for the payment of employment taxes. Contractors must be set up as PAYE or via an umbrella company who will deduct employment taxes.

Contractors via Fieldglass (Capita)

If the worker is working via an agency and paid on their payroll on a fully PAYE basis this can be checked during the recruitment process on the agency booking system and they will not be required to provide any further evidence.

Contractors via Fieldglass (Hays and Brook Street)

The manager must instruct the agency that the contractor will be deemed inside of IR35 and employment taxes should be deducted as such. The manager must also inform the Financial controls team (e-mail: tax.assurance@nhsbt.nhs.uk) so they can obtain confirmation from the agency that the contractor is PAYE or under an umbrella company. Failure to set up a contractor as PAYE or via an umbrella company will require the contractor to be terminated or their status changed.

Contractors non Fieldglass agency

Contractors should normally be booked via Fieldglass except in the case of scientists who should be booked via the relevant approved supplier, which can be found on the  available on the preferred supplier list document.

Where the contractor is appointed outside of Fieldglass the agency will require instruction to deem the contractor inside of IR35, if this confirmation is not received within 30 days of the start date NHSBT could be liable for any underpaid employment taxes and fines. The manager must instruct the agency that the contractor will be deemed inside of IR35 and employment taxes should be deducted as such. The manager must also inform the Financial Controls team (e-mail: tax.assurance@nhsbt.nhs.uk ) so they can obtain confirmation from the agency that the contractor is PAYE or under an umbrella company. Failure to set up a contractor as PAYE or via an umbrella company will require the contractor to be terminated or their status changed.

Workers under an umbrella company

If the contractor or agency worker‘s pay arrangements are made via an Umbrella Company Financial Controls team will need to ask that company for a statement confirming that all income received to the umbrella company from NHSBT employment is subject to PAYE and only reasonable expenses are offset prior to PAYE and NI being applied.  Additionally, we will ask them to state that none of this income is being withdrawn as dividends

Guidance and Templates

• NHSBT Contractor’s brief guidance document on collecting Tax Assurances
• https://www.tax.service.gov.uk/check-employment-status-for-tax/setup

Note: NHSBT deems all contractors are inside of IR35.

For any appeals against this treatment please supply a completed copy of the HMRC check of employment status and any additional information required to - tax.assurance@nhsbt.nhs.uk