[Update: 17.03.20] IR35 changes have been delayed until April 2021 due to the coronavirus outbreak. All dates and actions asked of Florence users in the below copy are now out of date. No action should be taken by Florence users at this time.
We've heard many questions about IR35 in the run-up to changes in the law on April 6th.
Understandably, nurses and carers want to know how it might affect working with Florence.
To help, we’ve gathered your most-frequently-asked IR35 questions, and shared the answers here.
If you need more help, please get in touch with your account manager, or call us on 0203 911 2555 - we’d be happy to talk through anything one-on-one.
IR35 and Florence FAQs
1. Can you tell me which care homes will still pay me via my limited company?
We are currently speaking to care homes to understand whether they will be working with limited company nurses after April 2020. We’ll be able to share more once we hear back from all our care homes.
If you have concerns about a home you work at regularly, please contact us and we can check if we have any further information to provide you.
2. Can I get paid via an umbrella company, instead of via PAYE?
No, it isn’t possible to get paid via an umbrella company with Florence.
We don’t work with umbrella companies because they don't provide the best value for nurses and carers.
Why we use PAYE instead of umbrella companies:
- Umbrella companies charge fees as well as deduct tax and National Insurance
- Legitimate umbrella companies will not deduct expenses to reduce your tax bill.
- Therefore, PAYE is better value, as even using a legitimate umbrella company leaves you with less take-home pay (as fees are charged on top of tax and National Insurance deductions).
We advise caution around using umbrella companies - if in doubt, seek advice from a professional. We’ve seen stories of workers hit with unfair tax bills after using non-compliant umbrellas, and the UK government has said there's risk involved, too - read their full advice here.
You can see more detail about our umbrella company policy in our help article.
3. What's the difference between the PAYE and limited company rates for shifts?
As care homes set their rates on Florence, we aren't able to show this yet, as we aren't able to make the comparison on future rates.
When thinking about the difference between PAYE and limited company earnings, there are a number of benefits to consider for PAYE. Take a look at our post on the benefits of PAYE to understand more.
4. Will PAYE rates on Florence be increased?
As mentioned above, care homes will continue to set their rates. We will be working closely with our homes to help them understand the changes, and encouraging them to post higher PAYE rates so that our nurses are always treated fairly.
We recommend adding details to your profile so you can continue to see all shifts available on Florence, both PAYE and limited company. This will help you continue to make informed decisions about which shifts you want to work.
5. I want to be paid via PAYE on Florence; what do I do?
You should add details to your profile so you can be paid via PAYE.
First, log in to Florence. You will see a pop up announcing "The law is changing on 6th April".
Click the button below this to get started.
You will be asked to...
- Provide some details - this will make sure payment goes to your preferred account, and your tax code is right.
- Sign a contract (it will be sent to your email and you can sign online) - this is to protect your rights as a worker.
Once you take these steps, we’ll do the rest - and you will be able to keep seeing all shifts available on Florence.
6. I would like to keep my limited company but also see all shifts on Florence; what do I do?
You should add details to your profile so you can see both limited company and PAYE shifts.
7. Will I get double taxed if I am paid via PAYE on Florence and via my other job(s)?
You should always end up paying the same amount of tax, regardless of how many jobs you have that are paid via PAYE.
How PAYE works when you have two or more jobs:
- You will only be able to apply your personal tax free allowance of £12,500 to one job.
- You only get one personal allowance, so it’s usually best to have it applied to the job paying you the most.
- If you earn over the personal allowance in that job during the year your effective rate of tax will be exactly the same. While it will appear that one job is more heavily taxed, this will be because you are using your personal allowance in the other job.
- If you earn under the personal allowance in the job you have stated as your primary job (or in both jobs), you will receive a letter from HMRC at the end of the year (P800) stating that you are entitled to a tax rebate. You will need to claim this from HMRC.
- You will only pay National Insurance on earnings above £166 per week in both jobs
- You will receive pension contributions from both jobs if you meet the auto enrolment conditions.
- You will have the option to opt out of pension schemes, but it’s not recommended as this offers both a tax saving and employer's contribution of 3% of eligible earnings.
However, it’s important to note you may face delays in receiving all money owed to you.
If you ever find you have been taxed more, some of your money could come through as an automatic refund from HMRC, and/or you may have to claim some of it back yourself via a tax rebate. Read more about this here on Money Advice Service.
To understand more, we recommend seeking professional advice on tax and pensions based on your individual circumstances.
8. Can Florence persuade care homes to work with limited company nurses?
No, Florence isn't able to do this, as care homes must follow the rules from the government.
By making changes based on IR35, care homes are following HMRC’s rules, which are their responsibility to comply with.
9. The CEST tool says I'm self employed - i.e., ‘outside IR35’. Why can't I stay using my limited company to get paid?
From April 2020, it will be the care home’s responsibility to determine your status, not your own.
We strongly recommend seeking professional advice when determining your IR35 status. If you have assessed yourself incorrectly as ‘outside IR35’, you risk HMRC coming after you in future for unpaid tax.
We do not recommend using the CEST tool, as many industry bodies (including IPSE, the Association of Independent Professionals and the Self-Employed) have stated concerns that it is unfit for purpose.
10. Can I be paid into one bank account for my limited company earnings, and another bank account for my PAYE earnings?
The ability to link two bank accounts to your profile isn't available yet, but it is coming soon. We’ll communicate to let you know when this is available, which should be in the next few months.
11. How do IR35 changes to Florence affect me if I am a carer?
Florence now only works with carers paid via PAYE, therefore carers will not be affected by these changes.
Got another question? Get in touch
Thanks for any feedback you can give, we’re ready and listening for any questions you have.