The HMRC Employment Status Tool has been designed for Trusts to support them in determining whether a PSC conforms to the IR35 rules. In simple terms IR35 applies if a worker is providing services to a client under circumstances that, if not for the involvement of the intermediary, would be viewed as employment regardless of contract length.
It is important to note that the decision of whether to apply these rules to a working arrangement rests with the Trust.
Updated Guidance for Trusts - May 2017
NHSI have updated their guidance to say that assessment of whether IR35 rules apply should be done on a case by case basis rather than by a broader classification of roles.
NHS Professionals Off Payroll Assessment
NHS Professionals originally completed the HMRC Employment Status for tax for individual assignments regularly requested by client Trusts. The outcome was that all assignments would be ‘deemed employment’ and all would fall within the legislation. NHSI’s reviewed guidance has no impact on the outcome of the Employment Status Tool.