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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13886
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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As a locum consultant for the NHS is it legal to channel payment

Customer Question

As a locum consultant for the NHS is it legal to channel payment through a limited company or does the IR35 legislation cover this and mean that HMRC will not accept this strategy and impose fines with first tax return?
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
HI

Thanks for your question

I am afraid the answer is no, you are employee for each of the trusts you provide your services to, and cannot channel these payments through a limited company, although why you would want to do this, when you will suffer PAYE tax at source from each of the trusts, and then suffer corporation tax on the money again, and you would have the accountancy costs to also offset, which would see you greatly worse off than you are already.


But the answer is No, and as you have already determined you would be in breach of the IR35 legislation, which states, were it not for the limited company, would you in fact be an employee - to which the response would be YES - so this falls fouls of the remit which would consider a limited company viable.

Do feel free to ask any follow up questions to my response

Thanks

Sam
Customer: replied 3 years ago.

thanks for this confirmation.


 


best wishes


 


matthew

Expert:  Sam replied 3 years ago.
Hi Matthew

You are very welcome - enjoy the rest of the weekend

It would be appreciated if you could rate the level of service, I have provided, as this ensures I am credited for my time


Thanks

Sam

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