published on
March 25, 2021

Why we're moving to support PAYE workers only from April 2021

WRITTEN BY
Amber Ainsworth
·
posted on
IR35

You may be aware that new IR35 legislation changes will come into effect on April 6th, 2021.

This means there will be a change in the government’s rules around how you’re categorised to pay tax. HMRC have provided a useful guide to the changes here.

If you’re a nurse with a limited company, IR35 will affect how you use Florence Flex.

From April 6th this year, we'll be moving to support PAYE workers only. This means we will no longer be supporting limited companies.

If you wish to keep booking shifts on Florence Flex, you will need to become a PAYE worker.

Click >> here << to become PAYE today.

Please note you have to be logged into your Florence Flex account in order to access the link.

Jump to frequently asked questions:

Watch our PAYE 'ask us anything' Zoom

We ran an “Ask us Anything” Zoom call to answer your questions about our move to support PAYE only.

Watch it here:

Or, scroll below to find the answers to your frequently asked questions...

We’re doing this because changes in IR35 law mean care homes using Florence Flex have opted to work with PAYE nurses only. Care homes, other agencies and Florence can’t ignore this, as it is UK law.

The law has been brought in by the UK government to make sure that agency staff pay broadly the same tax and National Insurance contributions as employees.

We don’t control the rates care homes post on Florence, but we always encourage care homes to set fair rates.

If you've already provided us with your PAYE information, you will be able to see the shifts and the rates for April and beyond on Florence Flex now.

If you have not gone PAYE yet, please click >> here << to fill out a five-minute form and go PAYE today.

Please note you have to be logged into your Florence Flex account in order to access the link.

There are three key reasons we support PAYE rather than umbrella company payments:

1. Better value for you

Umbrella companies charge fees as well as taking the same deductions as PAYE. Therefore, it’s better value to use PAYE as you aren't charged extra fees. 

2. No tax risk

Umbrella companies often promise that you can take home the majority of your salary (up to 90%). This could mean that they are involved in a tax avoidance scheme, which could then be challenged at a later date by tax authorities and result in you receiving a large tax bill. 

3. Consistent pay

When you work for an umbrella company, your pay date is dependent on when the umbrella company is paid by the agency. As a PAYE worker on Florence, you’ll be paid weekly on Thursdays before 6pm (if your timesheet is approved by 3pm the day before).

More information on why we don’t work with umbrella companies can be found here

You’ll be able to keep the flexibility and control of finding shifts on Florence Flex and choosing the rate you’re happy to work with. 

All your taxes will be taken care of, therefore you won’t need to hire an accountant. You can be 100% sure you’re paying the correct taxes this way, and are not running the risk of miscalculating and being chased for back taxes by HMRC.

You’ll also be automatically enrolled into Florence’s pension scheme.

More information on the benefits of being a PAYE worker can be found here.

You should always end up paying the same amount of tax, regardless of how many jobs you have that are PAYE. 

How PAYE works when you have two or more jobs:

Income Tax 

  • 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. 

NIC 

  • You will only pay National Insurance on earnings above £166 per week in both jobs

Pension 

  • 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.

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.

How to become PAYE on Florence Flex

Becoming PAYE on Florence Flex takes a matter of minutes. Everything is done online and it’s completely free to get set up. 

Click >> here << go PAYE.

Please note you have to be logged into your Florence Flex account in order to access the link.

Get in touch

If you have any further questions at all about becoming a PAYE worker, please get in touch with your account manager by phone or on email, any time. 

If you’re unsure of your account manager’s contact details, you can call us to ask your question on 020 3911 2555, or email [email protected].

Thanks for working with us during this time, we’re ready and listening for any questions you have. 

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