NHS refusing to pay PSCs?

Where is the problem with a PSC if the tax is being deducted at source?

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Is the issue that the NHS don't want ot be responsible for deducting the PAYE themselves and as such want an agency or umbrella to do it for them?

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By Mr_Paulius
23rd Feb 2017 17:22

If person/entity is deemed to be inside IR35, the responsibility of operating PAYE falls on to the Intermediary (i.e. recruitment agency). In the contractual chain, whoever is engaging directly with PSC, will have to opearate PAYE.

So: Self-employed/PSC > Recrtuiment Agency > NHS

Recruitment agency will be responsible of running an IR35 test, to establish if subcontractor is inside or outside IR35.

If the person would be enganging NHS directly (which is not very common), NHS would operate PAYE, but only if individual is inside IR35

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