Spire Healthcare and IR35

Information on what Spire Healthcare has done to comply with the legislative change which came into effect on 6 April 2021.

What is IR35?

  • IR35 is the commonly used term for the legislation introduced to prevent disguised employment 20 years ago. It was designed to assess whether a contractor should be treated as a ‘disguised’ employee, for the purposes of paying tax
  • IR35 changes were due to come into effect in April 2020, but were delayed until 6 April 2021, due to Covid-19, in the private sector. These changes will closely mirror those changes introduced into the public sector in April 2017
  • IR35 is a change in tax legislation enforcement of individuals working through vehicles such as a personal services company (PSC)

As this is a legislative change impacting the whole of the UK, it is imperative that Spire Healthcare complies.

Spire’s approach to IR35

Spire Healthcare has engaged 3rd party tax specialists to help analyse and determine its off-payroll workforce and whether roles fall within IR35.

We concluded this analysis in late 2020 and shared our findings in early 2021.

Spire has determined each role as outside or inside of IR35, and launched an appeals process, as per the legislation, where we are in a position to share the outcomes of the analysis.

What are the four key considerations of IR35?

There are many factors that determine whether roles fall within IR35 or remain outside, however, it is key to understand the reality of the working practices with regards to roles. Outside of the working practices, there are four main areas of focus, which are listed below:

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Mutuality of obligation (MOO)

Can you accept and reject work from the end client?

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Does the end client allow you to substitute yourself, at your own cost, without interference?

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Control (supervision, direction and control)

Does the end client dictate where, when and how the work happens, and how you are remunerated for that work?

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Part & parcel

Does your role form part and parcel of the end client’s organisation? Are you making organisation decisions on behalf of the end client, i.e. budgetary or appraisal related?

IR35 overview

You can watch a short video on IR35 here.

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