[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 All dates and actions asked of Florence users in the below copy are now out of date.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.
You may be aware that new IR35 legislation will come into effect on April 6th, 2020.
This means there will be a change in the government’s rules around how you’re categorised to pay tax.
It's a law all contractors should be aware of.
If you’re a nurse or carer, IR35 could affect how you use Florence.
IR35 is not from Florence - it's a UK law all agencies must recognise.
Read on to understand what the changes will be, how they might affect you, and what we’re doing to help make you ready.
You can also check out our top questions about IR35 and Florence.
What is IR35?
IR35 is a set of rules that determine the tax and National Insurance contributions that independent contractors (like nurses) should pay.
Does IR35 apply to nurses who work with Florence?
Yes. Nurses who work with Florence are independent contractors.
‘Inside IR35’ vs. ‘Outside IR35’ - what does it mean?
You might have heard of the terms ‘inside IR35’ and ‘outside IR35’ when talking about this subject - but what do they mean?
As an independent contractor, your work is given one of these statuses to determine the tax and National Insurance contributions you should pay.
Your work will either be seen as ‘inside IR35’, or ‘outside IR35’ by HMRC.
Your IR35 status
If your work is ‘inside IR35’
- You must be paid as a PAYE worker with income tax and National Insurance deductions at source, before payment reaches your account.
If your work is ‘outside IR35’
- You are paid via a limited company as you are seen as self employed for tax, and therefore responsible for your own taxes.
- You and/or your accountant must calculate any taxes required, and pay them.
Who decides my IR35 status?
Previously, you decided your status, and therefore whether your work should be paid via PAYE or via a limited company.
From 6th April 2020, it will be the care home’s responsibility to decide your status (if they are seen as a medium-sized or large private company by HMRC).
Why is this change happening on Florence now?
Because Florence works with privately-run care homes.
IR35 law means it is the care home's responsibility to decide the IR35 status of nurses.
Will this affect me if I use Florence?
Most care homes on Florence will need to choose how contractors are paid.
It is likely a great number will choose to only pay contractors via PAYE, as happened with the NHS in 2017.
This will likely affect you if you are a nurse who is paid via a limited company.
Carers on Florence are now only paid via PAYE, so this shouldn’t affect you as a carer, unless you are one of the small number who are still paid via limited company. If this is you, please get in touch with your account manager, who will explain more.
What does this mean for limited company nurses on Florence?
The same shifts will still be on Florence, but you may not be able to see some or all of them from April onwards.
This could limit the choice of shifts you can work.
Florence is designed to give you more choice, flexibility and control in your working life.
And we would like Florence to work for you like it always has.
If you’d like to continue to see all available shifts on Florence, you can add details to your profile so you can see both PAYE and limited company shifts.
What does 'adding PAYE to your profile' mean?
Adding details to your profile gives you the option to be paid via PAYE as well as via limited company.
If you add these details, you can still get paid via your limited company from care homes that offer this. Do note, however, that we expect less than 10% of shifts on Florence to be paid this way after April.
There are also several benefits to consider when thinking about being paid by PAYE. Discover more about what being paid by PAYE means here.
How to add PAYE to your profile
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.
Why adding PAYE to your profile helps you
There are several important ways adding PAYE to your profile will help you after April 2020:
- You’ll be able to work with the most flexibility possible, as you continue to see a range of shifts to fit your needs.
- You’ll have the power to choose from all available shifts, without reduced options for where you can work.
- You will have the advantage of being ready to work all shifts (including limited company shifts) where they are available.
- You’ll carry on receiving invites for shifts from all care homes you regularly work with.
We will keep speaking with you and answering your questions as changes are made to Florence.
If you’re unsure, do take a look at the questions we’ve answered about IR35 and changing your profile on Florence so far here.
Get in touch
If you have any questions at all, please check our question and answer page to see if we’ve covered your question to your satisfaction.
You can also get in touch with your account manager by phone or on email, any time.
Thanks for working with us during this time of change, we’re ready and listening to give any help you need.