IR35 bombshell for self employed locum pharmacists

The impact of determining that a locum is inside IR35

I’ve heard on the grapevine that two of the large multiples have determined that locum pharmacists are inside IR35. However, one of the other large multiples has determined that locums are outside IR35.

This illustrates a massive issue for locum pharmacists. How can a locum carrying out the same duties and having the same responsibilities be inside IR35 one day and outside the next, just because they are working for a different company?

This impacts both those trading as self-employed and Limited Company Contractors

One unforeseen consequence of the Inside IR35 determination is that it effectively says that you cannot work as either Limited Company Contractor or Self Employed. By deeming that a pharmacist is caught by IR35, the company is saying that, if the locum wasn’t working through a Limited Company, the pharmacist’s employment status would that of an employee. It follows then that they can’t work as self-employed either and should be working PAYE. I’m not saying that locum shifts should be inside IR35 or outside, that’s not my area of expertise and it is for each pharmacy contractor to decide, from April 6th.

I’ve said on many occasions, that I am worried that locums and pharmacy owners/operators and sleep-walking into this problem. HMRC have said that they will handle issues with a soft touch for 12 months but they don’t say they won’t backdate claims if they investigate after 12 months.

Take professional advice everyone. I don’t claim to be a tax or accountancy expert but I have been around pharmacy and the pharmacist arena for a long time, and I’m genuinely concerned for the immediate future for all concerned.