NHS contractor accountants

Accountants for NHS contractors

From locum doctors to IT analysts, contractors are integral for keeping the NHS running. But whether you’re working through a locum agency or as a Limited Company (among other options), there are a number of challenges to operating within the NHS workplace.

With specialist accountants for NHS contractors, Plus Minus offer a range of advisory and support services to help you thrive in this unique public sector environment.

IR35 assessment and contract review

IR35 off-payroll working rules for NHS contractors were set to change in April 2017. Contractors were viewed as ‘disguised employees’ exploiting the intermediary of a Limited Company to avoid paying higher tax rates. However, sustained objections from locum doctors and nurses led to the NHS backing down. They acknowledged that since contractors did not have access to the same benefits as full employees, it was unfair to tax them as such.

New rules require that the IR35 status of contractors be determined on a case-by-case basis. As the NHS lacks the resources to review contracts individually, and assumes that contractors and agency staff will fall under IR35 anyway. Contacting Plus Minus, NHS contractor accountants, our legal advice partners review a contract for you.

Tax planning for NHS contractors

Plus Minus NHS contractor accountants can help you stay on top of your tax liabilities, especially including Corporation Tax in particular. Many contractors run into difficulties because they fail to set enough money aside to pay this.

Business structure and bookkeeping

As well as helping you stay on top of your finances with streamlined bookkeeping software and personalised advice, our specialists on contracting can help to choose the right business structure for you.

• Agency: Working through an NHS or locum agency is the easiest way to start getting contracts, since they’ll be negotiated on your behalf. Agencies will also handle your taxes, which means less time spent on administrating your own finances. However, as an employee of an agency, you’ll have full PAYE and National Insurance liabilities.

• Umbrella company: Setting up as a contractor under an umbrella company is much like registering with an agency. You’ll be paid as a PAYE employee and the company’s fee will automatically be deducted from your salary.

• Sole trader: Setting up as a sole trader is an easy option for staying in control of your profits and taxes, although it’s not quite as efficient as a Limited Company. It may also be difficult to get loans to grow your business.

• Limited Company: This is a popular option for tax benefits, allowing contractors to pay themselves a tax-efficient salary and make up the difference with dividends. Various expenses can be claimed and National Insurance can be kept to a minimum. There’ll be more administrative paperwork, but that’s where us specialist accountants for contractors come in.