Off-Payroll Risk Management

Off-Payroll Risk Management

Brookson Healthcare Services provide you with Required Assurance checks as standard when you work with Brookson Direct Engagement.

Supported by our experienced Legal Team all temporary workers are appropriately checked and validated and you are kept up to date with all legal matters regarding your flexible workforce. This covers Required Assurance Compliance, IR35 Management and Contractual Advice.

  • Understanding Risk

    On 24 August 2012 HM Treasury circulated a directive that required all public sector bodies and Government departments to employ the most senior staff on their payroll and review the tax arrangements of all other off-payroll workers who fulfil the following criteria:

    • Are paid over £220 per day
    • Are engaged for over 6 months.

    The Directive applies to all public bodies (including the UK Police, NHS organisations, BBC, local education authorities) and Government departments (including local councils, central government departments, policy bodies). All off-payroll workers must be reviewed which includes:

    • Contractors working through their own personal services company (PSC workers).
    • Contractors working through an umbrella company.
    • Temporary workers paid by/through recruitment agencies.
  • Enforcement & Penalties

    The Treasury and Cabinet Office may impose penalties against a public body that fails to comply. These can amount to five times the income tax and national insurance contributions the worker should have paid on the income received from the public body. Any penalties incurred are deducted from the public body’s budgetary allowance.

  • Risk Assessment

    On engagement Brookson reviews your off-payroll healthcare professionals employment status whether they operate as PSCs, through Umbrella companies or as self-employed Sole Traders.

    These checks include:

    • A full Employment Status Assessment including a review of the contract for services and the healthcare professional’s working practices
    • A review of the Status Confirmation provided by a healthcare professional’s advisor (solicitor or accountant)
    • A review of the healthcare professional’s “Deemed Payment” calculations. or payslips during the period of their engagement
  • Risk Feedback

    Where off-payroll healthcare professionals are unable to demonstrate IR35/PAYE compliance, Brookson will recommend to them that s/he should:

    • Be paid directly by the NHS Health Board on its payroll
    • Move into a PAYE position with either an umbrella company or recruitment agency
    • Provide a “Deemed Payment” calculation together with an undertaking that it will be paid on its due date (as specified in the undertaking)

    Where off-payroll healthcare professionals are able to demonstrate IR35/PAYE compliance, Brookson will update the Vendor Management System to note the check has been completed positively.

    Brookson will discuss non-compliant healthcare professionals with you directly for action, together with follow-up confirmation. Related documentation will be made available from Brookson on request.

  • Ongoing Risk Assessment

    Brookson will ensure you remain compliant with regular checks on healthcare professionals in month 5 of their engagement, or immediately on request from you where it is anticipated the engagement will last more than 6 months.

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