Back in April 2017, the government changed IR35 rules affecting nursing professionals working through personal service companies (PSCs) in the public sector.
These changes resulted in recruitment agencies (which accept PSCs) having to deduct tax and National Insurance from nurses who were working via a PSC in the public sector.
In April 2021, the same rules were introduced for those working in the private sector. This means that any nurse working for a private sector client would also see the same deductions applied.
Essentially, these changes mean there is no financial advantage to working through a PSC versus PAYE, especially as there are additional costs associated with running a PSC (PAYE is free), so this way of working could be more costly for a nurse.
At Thornbury Nursing Services we have always paid our nurses via PAYE methods. We have never paid nurses through PSCs. We have also never offered our nurses the option to be paid via umbrella companies either as these are essentially PAYE schemes that you pay for, and often do not take home as much money as you expected.
Since the introduction of the government-led Apprenticeship Levy scheme, we’ve also heard that some umbrella companies are off-setting this employment cost onto nurses who choose to work through them. We believe this is unfair.
This is a complex area and causes a lot of confusion, read more about PAYE v umbrella company payments here.
Our nurses are not impacted by the recent changes to IR35 rules, nor are they affected by the potential offsetting of business-related taxes by working through an umbrella company. If you join Thornbury Nursing Services, you can work in both the public and private sector and receive pay that you expect, simply because we only pay PAYE and we’re extremely transparent on our pay rates.
Our pay rates are fixed and unlike some agencies, we do not have different rates for different clients. We strongly believe that we offer the best all-round package, and most importantly, we have always paid mileage in full back to our nurses. This means, compared to working for other agencies, nurses take home a higher pay with Thornbury Nursing Services.
If you’re currently working through a PSC or umbrella company and are worried about how the recent changes to IR35 will impact your pay, get in touch with us today. We have shifts available throughout England and Wales and our recently updated recruitment process means you could register and be out to work within a couple of weeks.