Nursing Staff

There are particular issues surrounding contract Nursing Staff…

  • They can no longer supply their services to the NHS through their own companies without falling within the HMRC rules under IR35. This is because of the obligation on public bodies to check employment status.
  • Their services are Exempt for VAT purposes if supplied either direct or by an Agency or other employment business.
  • This VAT Exemption does not extend to the supply by an Umbrella Company of workers to an Agency. This is because – in the view of HMRC – it is too far removed from the end-client.

As a result of this web of taxation regulation, Employment Agencies can no longer supply nursing staff employed by a standard Umbrella Company at competitive prices. This is because they are unable to recover the VAT Input Tax charged against the Exempt supply to the end-client and so need to incorporate it into the invoiced hourly rates.

For an Agency to have a viable business supplying nurses or nursing auxiliaries – assisting in medical care under supervision – they must employ them directly. If a nurse etc wishes to contract direct, the end-client (hospital / care home / NHS Trust etc) must take on the responsibility of being the employer. It no longer appears possible to interpose a corporate buffer between the contract worker and the agency or service user.

However Rota Umbrella has uniquely devised a working structure which allows Nursing Staff to supply their services through an umbrella organisation without the VAT disadvantage…the Mini-Umbrella Company.

Our Mini-Umbrella Companies operate like any other umbrella employer but they are not registered for VAT and have no requirement to do so. Nurses and Auxiliaries, Agencies and Clients can therefore enjoy the benefit of the corporate buffer without the costly VAT charge. This enables higher remuneration for contractors and lower costs for end-users.

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