Employment tax experts have warned that the NHS could potentially be a ticking tax time bomb following recent revelations relating to the tax affairs of the BBC and its presenters. They've also warned that locum staff not directly employed by the NHS could be putting themselves at risk too.
The warnings have been made in relation to the dubious tax avoidance schemes some NHS doctors and nurses are entering and considering the recent HMRC victory against former Look North presenter Christa Ackroyd. The BBC presenter has been hit with a tax bill for almost £420,000 after a hearing ruled that the way she was paid by the BBC through a personal services company constituted tax avoidance.
NHS Improvement, the watchdog, has been advising all NHS trusts to follow HMRC guidance regarding off-payroll staff, particularly following the recent changes to IR35 legislation which now makes the employer responsible for determining eligibility of a worker, rather than the employees themselves, although this currently only applies to the public sector.
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