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Don’t fear off-payroll rules if you contract with NHS

You need not fear off-payroll rules if you’re contracted with the NHS to provide IT solutions, according to one recruitment firm managing director.

New off-payroll rules set to discourage tax avoidance by people working particularly long-term or lucrative contracts in the public sector are set to go into effect next month and have generated a shedload of anxiety in the contractor market recently. However, max20’s Dan Tomlinson says that you need not being forced out of a contract – or worse yet, shore-horned into the PAYE system if you’re an IT contractor undertaking work for the NHS.

There’s no chance of any IT contractors working for the NHS will fall victim to the taxman’s new off-payroll rules, Mr Tomlinson pointed out in a recent interview. He also said that with the NHS demonstrating a dire need for experienced and skilled IT workers, there will be no dearth of positions from at least this facet of the public sector.

The highest demand right now is for the kinds of contracting operations that are so far outside IR35 to be completely safe from any of these new off-payroll rules, the managing director added. The NHS needs senior-level freelancers that run their own software development firms more than anything else in order to keep up with a demand for its burgeoning information technology demands, he also said.

The NHS also has several other things going for it that makes it conducive to interim contract working. One of the biggest things, said Mr Tomlinson, is that there’s no longer any need to have experience in working for the NHS previously, while other perks include rates that have become more and more realistic as time goes on and development projects that are pushing the cutting edge of current technologies.

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