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IR35 legislation - Timesheet deadlines and payment information

The new measures for IR25 Legislation applies to payments made on or after 6 April 2017 – this means the changes will also affect your assignments entered into before 6 April 2017 but operating after that date, or for any assignments for which payment has not been made by the 5th April.
 
As the timesheet authorisation and payroll processes vary from Trust to Trust, it may be that we need to contact you directly about specific cut off dates you need to be aware of. However, based on client feedback so far, and the changes we are implementing on our own system, LMS, we need you to be aware of the following key dates and actions required from you.

1. NHS Trusts where Holt Doctors operate their “direct engagement” (DE) model
  • This is relevant to the following Trusts:
  • Bedford Hospital NHS Trust 
  • Chesterfield Royal Hospital NHS Foundation Trust 
  • Doncaster and Bassetlaw NHS Foundation Trust 
  • Northern Lincolnshire and Goole NHS Foundation Trust 
  • United Lincolnshire Hospitals NHS Trust 
Bookings that finish before 26th March
Our clients will not be able to process payment until after 5th April 2017 for any timesheets received after 10am on Monday 27th March 2017. Please keep sending in your timesheets in as quickly as possible between now and 26th March to avoid any last minute issues/delays.

Bookings extending beyond 26th March 2017
Our clients will not be able to process payment until after 5th April 2017 for any timesheets received after 10am on Monday 27th March 2017.
If you wish to be paid under the existing rules for any work completed up until 26th March, timesheets (duly authorised and correct) will need to be submitted by this timeframe. All timesheets submitted thereafter will be processed and paid according to the new legislative requirements and assignments will be deemed to be “inside IR35” by our clients.

Bookings for assignments post 5th April 2017
For any new booking made for an engagement commencing after 5th April 2017, you will not be engaged outside of IR35 and deductions will be made for associated employment taxes and NI contributions via a payroll arrangement.

Further Changes
Our clients will be issuing amended DE candidate terms and conditions to you for assignments to reflect the new processes and deduction of employment taxes and NI (including employer’s NI which will also no longer be payable to PSCs).

Our clients will also require some additional information such as NI number/DOB for example. This will be requested as part of updated booking procedures.

Please note that none of our DE clients using the Holt Doctors DE model will accept payments to umbrella companies.

2. NHS clients which use STAFFflow for their DE model (e.g. Isle of Wight)

Your recruiter will advise you directly on which clients are relevant for these purposes but please note that STAFFflow will be implementing the same cut off dates for timesheets as the Holt Doctors DE model. You may also notice that you receive updated booking confirmations from Validate/STAFFflow to reflect the split between pre-26th and post-26th March shifts.

Please ensure you submit your authorised timesheets within the relevant timeframes if you wish to be paid for work completed before 27th March within the old IR35 rules. All payments made after 5th April will fall within the new IR35 rules, with assignments considered inside “IR35” and appropriate employment taxes and NI deducted (including employer’s NI).

As for our own DE model (and many others) STAFFflow will not make payments to umbrella companies.

The STAFFflow PSC contract will also be updated to reflect the changes.

3. NHS clients and other DE models

DE Provider Authorised timesheets to be received by:
  • Brookson (e.g. for Barnsley): Tuesday 28th March
  • Vantage – Medacs DE: 4pm Tuesday 28th March
  • 247 Time: Monday 20th March
  • HCL Clarity: Awaiting further information
Your recruiter will advise you directly on which clients are relevant for these purposes. In the meantime, please do continue to submit your authorised timesheets as quickly as possible.

4. Non DE bookings – where we pay you directly for your assignments

Existing bookings extending beyond April 5th 2017 or which end before April 5th 2017
To date, our clients have said that any healthcare worker currently supplied via a limited company arrangement will operate within IR35 and as such we must deduct the relevant employment taxes and NI from any payments we make to you after April 5th 2017.

Please note that we will not be able to process any payments to you until after 5th April 2017 for timesheets received after midday on Monday 3rd April 2017.
If you wish to apply the current rules on payments you make to your healthcare workers for any work completed up until 2nd April 2017, timesheets (duly authorised and correct) must be submitted within this timeframe.

New bookings post April 5th 2017

Again, as, to date, all of our clients have stated that the PSC will be “inside IR35” we will be required to deduct the relevant employment taxes and NI before payment to you.

Further changes
We will need to amend our own candidate terms and conditions with you to reflect the new processes and the change in responsibilities for tax and NI deductions (including employer’s NI which will no longer be payable to PSCs). We may also require some other information, such as NI number for example. Your recruiter will advise you appropriately.

5. Other Agencies

We work with some NHS clients as a sub-contractor to other agencies. We have requested detailed guidance from those agencies as to process changes or deadlines and will communicate those out to you as and when we receive them, where they may be relevant you. As a general rule though, please continue to follow the guidelines above for non DE bookings unless we tell you otherwise.
 
If you have any further questions regarding the timesheet submission deadlines and payment, contact your recruiter on 0208 099 6943 who will advise you directly on which clients are relevant for these purposes. In the meantime, please do continue to submit your authorised timesheets as quickly as possible.