IR35 Update

Please find below a copy of the letter we sent to all our working locums here at QLS.

There are many schemes out on the market that offer weird and wonderful ways of achieving more NET pay. Some are very clever and not illegal but are risky to both you and your agency.

Please feel free to download one of the illustrations below if you would like to see the workings and take home pay for your pay rate.


Dear ********,


Hope this message finds you well.


IR 35 Update

Please find attached your personal pay illustration and a bit of information on some benefits.


As you work as a Pharmacist or Pharmacy Technician in the public sector and paid through your own limited company your assignments are inside IR35.
Several major legislative changes come in to force from the 1st April 2017 which will significantly impact your earnings.


The changes mean that we will have no choice but to deduct tax and national insurance as if you are an employee before paying your limited company.
There will be no advantage to running your own company as the tax efficiencies will have been negated, also many Trusts are writing to us stating they will no longer engage with PSCs.


If you continue to use your limited company post-April, you will receive a lower rate of pay.
This is because we will be required to adjust your rate to take employment deductions, such as Employers NI, in to consideration.
There is also the risk that HMRC could challenge your previous earnings on this assignment once the end client (NHS) has stated it falls within IR35.


We have spent many hours researching possible alternative payment vehicles including running our own PAYE scheme.
We believe the best solution would be to use an umbrella company. There are many out there in the marketplace to choose from all offering a similar service.


We have had meetings with many companies over the past few weeks and concluded that FPS will be our preferred umbrella company.
As one of the most longstanding and respected providers in the marketplace their solution ticks all the right boxes for you and us, providing an immediate solution for our predicament.


We have agreed a service level with FPS which means you will still be paid on Wednesdays. FPS have a £15 per timesheet fee which is “middle of the road” and NETs out at about £9.
They provide a very transparent payslip which clearly states all deductions and more importantly clearly states the holiday pay separated in the payslip.
Some umbrella companies are playing games with the holiday entitlement.


As we are the introductory party to the NHS, if for any reason your umbrella company should not send the HMRC your relevant taxes and contributions,
QLS would become liable for those payments, therefore, we don’t want to use new or fly by night umbrella companies who are offering cheap fees and could be “here today and gone tomorrow”
We would also prefer all our locums to choose FPS as it makes our administration and payroll process a lot easier. We send all the payroll to one place instead of individual companies.


With the above in mind we would like somebody from FPS to contact you with regards to their services. If this is ok with you, please let us know and we will instruct a representative from FPS to contact you.


Please be aware, we really want you to use FPS because we genuinely feel they can offer you and us as an agency the services and security we require. You are not being forced to use FPS but we really think it’s the best option available.

If you work for another agency and you would like to join QLS