Agency nurses beware the false lure of tax umbrellas
An arrangement that offers agency nurses quick payment and more money in their pocket than usual sounds tempting – but there’s a catch
Agency nurses working in the NHS have had a tough time recently. As well as caps on how much they are paid, they are increasingly being caught by regulations that mean they have to pay tax as if they are an employee and cannot offset expenses, such as travelling to work, against tax.
These regulations – known as IR35 – have led some to turn to umbrella companies to process their pay. Messages on nurses’ forums suggest that some nurses have been told they would receive very high percentages of their gross pay in their pocket – far higher than would be expected after tax and national insurance (NI) are deduced.
An umbrella company pays the nurse –...
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