Agency Nurse

Agency Nurse

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I have a client who currently work part time with NHS and also work part time with a recruitment agency to carry out her duty as a nurse in different hospitals. She can choose which hospital to go, if she want to work or not, and can choose what depatment of the hospital of her choice she is willing to accept work.

The agency have required that she register a company, payment her made directly to the company in the companiy's name.

Can this person pay themselves in Dividend and no salary at all - Maximum income from the agency work is 12k?

Would her her total income be affected for tax purpose due to her part time employment with NHS?

What are the possible allowable expenses for this kind of area asides from Transportation, Parking tickets, uniform expenses?

Can proportion of house rent be allowed as the company is registered in her residential address?

Thanks for the heads up in advance.

Replies (7)

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By stratty
02nd Jan 2015 15:50

You have a client...

Are you an accountant in disguise?

The questions you ask are very basic and what I would expect any qualified and experienced accountant to know.

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By BolaF7
02nd Jan 2015 16:13

I AM NOT AN ACCOUNTANT IN DISGUISE MATE!

This is a new client and new area entirely, I have simplified this question so as to encourage a response which deals with what I am asking. I have seen similar question posted which were not concluded on this forum.

Amongst all other things, IRS35 is what is screaming and for others they don't thinks it's the case.

And for allowable expenses and deductions that I have asked, its just for people who have served similar clients to give their opinion on this or a genuine advise.

I think this is what the forum is all about - knowledge/experience sharing?

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the sea otter
By memyself-eye
02nd Jan 2015 16:13

Heads up?

Heads down methinks - in an accountancy for beginers textbook.

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By stratty
02nd Jan 2015 16:21

Knowledge

I'm all for sharing knowledge and do my fair share of helping people who are obviously struggling with a technical issue.  Be that either by imparting technical knowledge or giving my professional opinion.

However when someone drops a question on the forum on behalf of one of their "clients" that you would expect any competent accountant to understand it can only be viewed with scepticism.

 

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JC
By A_non
03rd Jan 2015 15:34

Yes..

she can infact pay whole of £12k as dividend without attracting any tax liability but this will not be an allowable deduction in CT computation, therefore you need to do the maths to work that out..

or

 

she can pay herself a salary up to the PT £7,956 without attracting any NI or Tax yet being allowable deduction in CT and rest as dividends. This will also qualify her to state benefits etc 

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Replying to Wanderer:
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By BolaF7
17th Jan 2015 12:42

IRS35 and Nurse working with Agency

A_Non - Thanks for your sincere contribution.

The main issue I am unsure about is if nurses working through an agency will be caught under IRS35 and therefore a service company.

If they are caught under IRS35 and treated as a service company, would they still be able to pay themselves in Dividends as well as salary?

I will appreciate any contribution from people who have dealt with agency nurse working under a registered company as this happens to be a common thing with nurses working agencies nowadays.

Thanking you in advance.

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By VP
13th Mar 2015 12:32

I have the same

I have recently taken on a client who is exactly as you describe.

She also asked about putting her house costs through the company. As the business is not run from her home and there is no exclusive room dedicated to the business she can not put any house cost through the business. Please see these links for more help. 

http://www.hmrc.gov.uk/manuals/bimmanual/bim47825.htm

http://www.hmrc.gov.uk/manuals/bimmanual/BIM47800.htm

http://www.hmrc.gov.uk/manuals/eimanual/EIM32760.htm Her total income for tax would be affected depending on how much she earns in her PT job and how much she pays herself as a dividend. You would need to do a self assessment tax return and calculate the effect.  

Hope this helps.

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