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.

The 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.

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